ITA Dozen: A Simple 12-ETF Portfolio [View article]
Contheon,
VIG and DEM are certainly two options. I would need to run an analysis to see if they increase or decrease the Diversification Metric and how they impact the Correlation Matrix. Thanks for the suggestions. I hold VIG in a portfolio or two, but not DEM.
I use TDAmeritrade and when possible use commission free ETFs. As I recall, DEM is not one of TDA's commission free ETFs, but that does not automatically eliminate it as an option.
ITA Dozen: A Simple 12-ETF Portfolio [View article]
The main objective of the above analysis is not historic, but rather what might one expect or project going forward over the next six to twelve months.
If I were to make a guess, I would NOT expect this portfolio to grow at 8.4% annually as the current market is over-bought in my opinion. There are a number of reasons and one can be found within my BPI article.
Bullish Percent Indicators For 11 January 2013 [View article]
Lenstj,
I don't disagree with you and I posit we will see the market dip sharply within two months unless Congress comes to some reasonable agreement over the national debt. The debt issue is a good excuse for an over-bought market to retreat and just take a rest.
The other position is that the economy is strengthening and we could see the indexes and sectors remain strong for a long period.
Larry Swedroe's 'Think, Act, And Invest Like Warren Buffett': Sound Advice Most Investors Can Bank On [View article]
wd,
I don't know about Money magazine, but Swedroe is advocating a Boglehead's approach to investing. One I agree with - I should add. I too have reservations about using the name of a successful investor in a book title. Read all the Amazon reviews and you will pick up similar concerns from at least one reviewer.
While I appreciate the need to sell books, my real concern focuses on the tension between trying to write a book that helps set investors on the right path, while also pushing professional management. Since I am not a professional money manager, I have my own bias. If one has the interest and some mathematical aptitude, it is not too difficult to save professional management fees.
I'm sure this is not the end of the discussion where or not to see professional management.
Harry Browne's Permanent Portfolio And Market Stages [View article]
Boom,
I have looked at the yield issue, but not to the level where I have made any decisions as to replacements. What yield are you seeking from a portfolio? The yield in the above portfolio is 2%. When one moves much above 3% then other limits begin to show up.
One option is to include a REIT ETF such as VNQ or RWX.
Harry Browne's Permanent Portfolio And Market Stages [View article]
Hi Zach,
I'm beginning the process of developing a portfolio built around the Harry Browne and David "Swensen Six" portfolio. Such a portfolio may circumvent the concerns you raise - and they are real.
Have you considered opening up an account with TD Ameritrade as they have 101 commission free ETFs? Nearly all ETFs I use come under the commission free umbrella so my costs are very low.
Does It Make Sense To Include Bonds And Income ETFs In Your Portfolio? [View article]
Brad,
I'm reluctant to offer any advice on either BLKN or EFT as I don't own or track either product. I see where BLKN has an expense ratio of 0.76% or quite high in my opinion.
Portfolio Rebalancing: Threshold Limits And Correlation Of Assets Are Determining Factors [View article]
While the specific correlations between individual holdings will not change, they will change in the context of an overall portfolio depending on the percentage allocated to each holding. See the example I provided to jreddick's first question. Look at the correlation matrix provided in the article.
ITA Dozen: A Simple 12-ETF Portfolio [View article]
VIG and DEM are certainly two options. I would need to run an analysis to see if they increase or decrease the Diversification Metric and how they impact the Correlation Matrix. Thanks for the suggestions. I hold VIG in a portfolio or two, but not DEM.
I use TDAmeritrade and when possible use commission free ETFs. As I recall, DEM is not one of TDA's commission free ETFs, but that does not automatically eliminate it as an option.
Lowell
ITA Dozen: A Simple 12-ETF Portfolio [View article]
If I were to make a guess, I would NOT expect this portfolio to grow at 8.4% annually as the current market is over-bought in my opinion. There are a number of reasons and one can be found within my BPI article.
http://seekingalpha.co...
Lowell
ITA Dozen: A Simple 12-ETF Portfolio [View article]
Lowell
Bullish Percent Indicators For 11 January 2013 [View article]
Utilities likely provides the least useful information. I pay most attention to the NYSE BPI data.
Lowell
Bullish Percent Indicators For 11 January 2013 [View article]
I don't disagree with you and I posit we will see the market dip sharply within two months unless Congress comes to some reasonable agreement over the national debt. The debt issue is a good excuse for an over-bought market to retreat and just take a rest.
The other position is that the economy is strengthening and we could see the indexes and sectors remain strong for a long period.
Lowell
Sense And Nonsense About Climate Change. What Do Investors Need To Know? [View article]
“If someone doesn’t value evidence, what evidence are you going to provide that proves they should value evidence.
If someone doesn’t value logic, what logical argument would you invoke to prove they should value logic?”
Lowell
Larry Swedroe's 'Think, Act, And Invest Like Warren Buffett': Sound Advice Most Investors Can Bank On [View article]
I don't know about Money magazine, but Swedroe is advocating a Boglehead's approach to investing. One I agree with - I should add. I too have reservations about using the name of a successful investor in a book title. Read all the Amazon reviews and you will pick up similar concerns from at least one reviewer.
While I appreciate the need to sell books, my real concern focuses on the tension between trying to write a book that helps set investors on the right path, while also pushing professional management. Since I am not a professional money manager, I have my own bias. If one has the interest and some mathematical aptitude, it is not too difficult to save professional management fees.
I'm sure this is not the end of the discussion where or not to see professional management.
Lowell
Harry Browne's Permanent Portfolio And Market Stages [View article]
Thank you for the link.
Lowell
Harry Browne's Permanent Portfolio And Market Stages [View article]
If investor think diversification will come from the "Morningstar nine" they are kidding themselves as all these asset classes are highly correlated.
Lowell
Harry Browne's Permanent Portfolio And Market Stages [View article]
Increasing yield is certainly an option so long as one does not sacrifice overall return.
What is a DG portfolio? Is it a Dividend-Growth portfolio?
Lowell
http://bit.ly/rfwO89
Harry Browne's Permanent Portfolio And Market Stages [View article]
I have looked at the yield issue, but not to the level where I have made any decisions as to replacements. What yield are you seeking from a portfolio? The yield in the above portfolio is 2%. When one moves much above 3% then other limits begin to show up.
One option is to include a REIT ETF such as VNQ or RWX.
Lowell
Harry Browne's Permanent Portfolio And Market Stages [View article]
Yes, there are three issues with PERM.
1) Lack of historical record.
2) Expense ratio is too high.
3) I don't like the current asset allocation ratio.
Lowell
Harry Browne's Permanent Portfolio And Market Stages [View article]
I'm beginning the process of developing a portfolio built around the Harry Browne and David "Swensen Six" portfolio. Such a portfolio may circumvent the concerns you raise - and they are real.
Have you considered opening up an account with TD Ameritrade as they have 101 commission free ETFs? Nearly all ETFs I use come under the commission free umbrella so my costs are very low.
Lowell
Does It Make Sense To Include Bonds And Income ETFs In Your Portfolio? [View article]
I'm reluctant to offer any advice on either BLKN or EFT as I don't own or track either product. I see where BLKN has an expense ratio of 0.76% or quite high in my opinion.
Lowell
Portfolio Rebalancing: Threshold Limits And Correlation Of Assets Are Determining Factors [View article]
Lowell