Bohr Portfolio Review: 15 September 2011

Since the last update, shares of RWX, VOE, VEU, VTV, DVY, VWO, and VUG were added to the Bohr portfolio.  The number of shares were small as most of the asset classes are in balance.  The two asset classes that need attention are large-cap value and international REITs.  I over-shot large-cap value with purchases in VTV and DVY.  Mid-Cap Blend will take care of itself.  As new cash is added that asset class will slowly come into balance.  It is only 14 shares of VO above target at this time. 

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“King of the Mountain” Article by Rob Arnott

While Rob Arnott's "King of the Mountain" article is not a particularly easy read, Platinum members would be well served to spend time studying what he has to say about inflation, interest rates, and P/E ratios.  Without delving into all the t-tests and other statistics, extract the general gist of this article to gain a grasp on the current valuation of the market.  Is it properly priced or are we headed toward another 30% dip in the S&P 500?

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Smartest Portfolio You’ll Ever Own?

Below is a portfolio I extracted from Daniel Solin's recent book, "The Smartest Portfolio You'll Ever Own."  Before I run a QPP analysis on one of the suggest portfolios, let me point out that the BWZ ETF did not have a three-year record.  As a result, the following analysis runs for only 31 months.  Under current market conditions, my preference is to use 48 months as that goes back beyond the market crash of 2008.

In addition, I selected the portfolio Solin classifies as Medium Risk.  Note that 40% of the portfolio is invested in bonds.  One last thing to keep in mind is that it is currently difficult to create a portfolio that meets all our projection goals.  I'll follow up what I mean in the analysis below.

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