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  • 5 Simple Ways To Beat The Market: Part 5 Of 5 [View article]
    Sorry Ploutos, not sure if you mentioned for those interested in NOBL (S&P Dividend Aristocrats), it is also an Equal-Weighted index.
    Dec 12, 2014. 01:54 PM | 1 Like Like |Link to Comment
  • 5 Simple Ways To Beat The Market: Part 5 Of 5 [View article]
    Great to have you back Ploutos. Enjoyed all five of your articles. Great advice for B&H investors.
    Dec 12, 2014. 01:18 PM | 1 Like Like |Link to Comment
  • The Oil Trade [View article]
    Ploutos:

    Great to see you back!!! I thought we had lost you to a car accident on a freeway in Chicago, or some other unfortunate life-ending event, as your posts simply....stopped. What a void your absence created on SA. Glad to see you are alive and well (and hopefully healthy) and really looking forward to the return of your wisdom and strategies on the markets. Thanks for an excellent early Christmas present!
    Dec 3, 2014. 08:09 PM | Likes Like |Link to Comment
  • Guggenheim's RSP: Equal Weight Or Dead Weight? [View article]
    Mr. Porter:

    "Author’s reply » I do not mention VO or IWR. They are not, strictly speaking, comparable ETFs. My aim was to compare equal weighting with cap weighting in strictly comparable funds; I discuss VOO, IVV and SPY, all of which have the same holdings as RSP."

    I made my comments concerning IWR (iShares Rusell MidCap ETF) and VO (Vanguard MidCap ETF) after two of your readers left the following comments:

    galicianova

    "russel mid cap (800 stocks!) does pretty much exactly as RSP at half the price
    0.2%!"

    sbenzian

    "The charts of VO (vanguard mid cap) and RSP are very similar at one, five and ten years--with a slight edge for VO at 5 and 10 years"

    After most readers pull up a long-term chart on your comparison of RSP to VOO, IVV, and SPY they recognize that RSP is the clear winner. Next, more astute readers often compare RSP to MidCap indices such as IWR and VO, as the two readers above did, claiming the performance is identical, yet IWR and VO have lower expense ratios. If my memory is correct, a few years ago even Morningstar made a mention that RSP's equal weighting simply made it a MidCap in sheep's clothing.

    "Next, your point about when equal-weighted funds buy and sell is not germane to the issue, and may not even be correct. RSP rebalances quarterly and reconstitutes annually - not when market is up or down. Please cite your sources for your claim so that I may evaluate them."

    Equally weighted portfolios (such as RSP) benefit from two major differences over capitalization weighted portfolios. First, by equally weighting each of the 500 issues in the portfolio, the smallest issues, which historically tend to outperform larger issues, are over-weighted in relation to their capitalization weighted brothers (VOO, IVV, SPY). For example, IVV currently gives Apple (AAPL) at 3.8209% its largest weighting vs. Diamond Offshore Drilling (DO) at 0.0132% its smallest weighting. But RSP currently gives Apple (AAPL) 0.22% weighting and Diamond Offshore (DO) a 0.16% weighting.

    Second, the other edge for equal weighting is that each quarter when RSP rebalances their portfolio, they systematically sell recent gainers and buy recent losers (buying low and selling high) in order to weight their issues equally. Capitalization weighted ETFs simply buy and sell their stocks according to their size, regardless of whether they are over/under valued or recently gained or lost in price.

    And finally -

    "As for RPG and RPV, they are very nice funds, but - again - they are not strictly comparable to RSP in terms of holdings, and do not pertain to the issue I was examining here."

    You are correct that they are not strictly comparable to RSP, although their holdings are also included in RSP. But for those who may sometimes seek to think outside the box, these two ETFs may even be better than RSP.

    I am sorry that you took such umbrage at my original comments and hope that you may find these additional comments/responses more satisfactory. In any event, I wish you a very happy Turkey day.
    Nov 27, 2014. 04:57 AM | Likes Like |Link to Comment
  • Guggenheim's RSP: Equal Weight Or Dead Weight? [View article]
    Interesting that this exact same issue pops up every two years or so on SA, with a different author and different reader comments, exploring the RSP vs. VO/IWR debate. While charts show the performance of RSP, VO and IWR to be almost identical, the underlying stocks in RSP remain LargeCap stocks equally weighted, while the stocks in VO and IWR remain MidCap stocks market-cap weighted. The Equal Weighting methodology (RSP) takes advantage of buying low and selling high when re-balancing, which is not true for market capitalization issues which usually continue to buy stocks even though they may be overvalued at the time of re-balancing.

    I have utilized RSP for many years along with their even stronger siblings - Guggenheim's S&P 500 Pure Growth (RPG) and Guggenheim's S&P 500 Pure Value (RPV). The latter has had exceptional out-performance from the market bottom on March 9, 2009 through November 24, 2014. Stockcharts.com shows RPV returning approximately 584% vs. approximately 303% for both VO and IWR. Have a look and decide for yourself.
    Nov 26, 2014. 06:11 PM | Likes Like |Link to Comment
  • The Average Investor's Biggest Mistake [View article]
    In reference to the inclusion of the AAII Sentiment Survey, you may find this interesting.

    The following quote is from the June 2014 issue of the AAII Journal in an article entitled: “Analyzing the AAII Sentiment Survey Without Hindsight” by Charles Rotblut, CFA, vice president and editor of the AAII Journal

    “At first glance, the numbers suggest the AAII Sentiment Survey can be used to determine buying opportunities or times to increase your allocations to stocks. The danger in thinking that is that the link is correlated, not causal. High levels of pessimism or low levels of optimism do not cause stocks prices to rebound. Rather, they are associated with periods of market turbulence. Such periods are often characterized by reduced valuations. Therefore, the AAII Sentiment Survey may work better as a prompt to determine whether a buying, selling or rebalancing opportunity exists than as an actual market timing indicator.”
    Sep 6, 2014. 03:44 PM | 1 Like Like |Link to Comment
  • AAII Sentiment Survey: Individual Investor Optimism Reaches An 8-Month High [View article]
    In the June, 2014 edition of the AAII Journal, an article written by Charles Rotblut, CFA which was titled: Analyzing the AAII Sentiment Survey Without Hindsight, stated the following:

    "Can You Use Sentiment as a Market Timing Tool?

    At first glance, the numbers suggest the AAII Sentiment Survey can be used to determine buying opportunities or times to increase your allocations to stocks. The danger in thinking that is that the link is correlated, not causal. High levels of pessimism or low levels of optimism do not cause stocks prices to rebound. Rather, they are associated with periods of market turbulence. Such periods are often characterized by reduced valuations. Therefore, the AAII Sentiment Survey may work better as a prompt to determine whether a buying, selling or rebalancing opportunity exists than as an actual market timing indicator."

    It is interesting that, although Mr. Rotblut admits that the AAII Sentiment Survey should not be used as a market timing indicator, that AAII continues to conduct this survey, and report the results to both it's members and the public on a regular basis.
    Aug 22, 2014. 06:23 PM | 1 Like Like |Link to Comment
  • Contrarian And Momentum Investing - Part 2 [View article]
    drftr:

    Sadly, Ploutos has not responded in any comment area or authored any new articles since December of 2013. It appears that he has fallen off the face of the earth, and maybe that is exactly what has happened to him. I followed him from the very beginning and felt his ideas and strategies were second to none. He was always on top of responding to criticism or questions about the subjects he wrote, right up until the day he disappeared. His wisdom, so valued by many on SA, left a void in many close followers who treasured his posts. RIP Ploutos.
    Aug 22, 2014. 12:37 AM | 1 Like Like |Link to Comment
  • How Fund Managers Who Invest Elsewhere Exploit Their Clients [View article]
    I believe you may want to consider the regulatory reasons that so many managers do not want to personally invest in the funds they manage.
    Jul 22, 2014. 10:09 AM | Likes Like |Link to Comment
  • Simply Buy The Dividend Aristocrats And Perhaps Beat The Market [View article]
    galicianova: The expense ratios are currently the same at 0.35%. However, NOBL is currently waiving a portion of their fees (0.43%) until 9/30/2015. Once the fee waiver ends, the anticipated expense ratio is 0.78% (0.35+0.43=0.78). If this ProShares ETF gathers sufficient assets by that time, and succumbs to the downward pressure being exerted on the industry for lower expenses, it is possible that the current expense ratio could remain competitive with SDY, by remaining at 0.35, or at least matching any changes for SDY.
    Jun 29, 2014. 01:34 PM | Likes Like |Link to Comment
  • Simply Buy The Dividend Aristocrats And Perhaps Beat The Market [View article]
    galicianova: One reason is that NOBL is equal-weighted. Another reason is that NOBL is more concentrated, holding roughly half the issues that SDY holds. Another reason is that NOBL has slightly outperformed SDY during periods of rising markets, while as expected, only slightly underperformed during a mild correction in January.
    Jun 29, 2014. 11:45 AM | Likes Like |Link to Comment
  • The DIA-IEF Double Switch: One Of The Safest And Laziest Strategies [View article]
    I also miss the knowledge and experience in articles by Ploutos. His postings simply vanished from SA in December. Does anyone know if he met his demise, had health issues or stopped publishing due to regulatory concerns? Thanks.
    May 28, 2014. 05:25 PM | Likes Like |Link to Comment
  • Myths About Momentum: Part I [View article]
    Larry: Good article. Question: While academics define the momentum time frame as months 2-12, I have read other papers suggesting 5 months to be the optimal time period. Yet other momentum systems often utilize 6 months. Personally, what time frame do you use or believe is the most optimal?

    Thank you for the time and expertise you provide in publishing interesting articles on Seeking Alpha.
    May 20, 2014. 03:55 PM | Likes Like |Link to Comment
  • Myths About Momentum: Part I [View article]
    Larry: Good article. Question - while the academic's time frame is months 2-12, I have also read papers that state 5 months is the optimum time frame and quite frequently read articles about momentum systems tied to 6 month time frames. Personally, what do you use or believe is the most optimal time frame? Thank you for the work you provide through Seeking Alpha articles.
    May 20, 2014. 03:50 PM | Likes Like |Link to Comment
  • High Yield/Treasury Momentum - December 2013 [View article]
    Ploutos:

    No posts in 5 months! Will you at least let us know you are alive and well???
    May 5, 2014. 01:55 AM | Likes Like |Link to Comment
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