Nine Critical Investment Decisions 1. The Decision to Save or Not to Save 2. The Go-It-Alone or Professional Manager Decision 3. The Decision to be a Passive, Active or Mosaic Investor 4. The Decision to Use Index Funds or Stocks to Populate the Portfolio 5. The Asset Class or Sector Class Decision 6. The Asset […]
Feynman Portfolio Study: Part 8
In Part 8 of the Feynman Portfolio Study, which concludes the analysis of “Momentum” Investing as a major Strategy option, I look at the question of “How Many Assets (ETFs) should I include in my Portfolio?” There is no definitive answer to this question, but the analysis provides an idea as to the performance trends that […]
Preparing For Retirement Requires Discipline
I wish I could show this post to every new graduate, be they high school or college. The following three screenshots point out just how difficult it is to get ready for those retirement years. In the first slide I lay out the assumptions for this investor. In the second slide we have twenty index […]
Feynman Portfolio Study: Part 7
In Parts 1 to 3 of the Feynman Portfolio Study I examined the roles of diversification and optimization in Portfolio Construction. Part 4 focused on the re-balancing of “Classic” US Equity/Bond portfolios and Part 5 introduced the concepts of “Momentum” investing. In Part 6 of the Study I focused on Risk Management and the use of […]
The Feynman Study: Part 6-7
Part 6-7 of the Feynman Portfolio Study applies the SHY momentum filter to the Feynman “Momentum” Portfolio introduced in Part 5 of the Study. Also in this Part 6-7, I introduce the concept of allocation weighting based on (momentum) Ranking as an alternative to allocation weights based on (“Dynamic”) optimization as used in Parts 3, […]
Weekly Music Recommendation
Photograph: Arches National Park – Image captured just as the sun was rising. My music selection this week is Yo-Yo Ma playing Ennio Morricone. This CD includes some of the most beautiful and haunting compositions ever collected on one platter. As you listen to this music you will be drawn back to films as Ennio Morricone […]
The Feynman Study: Part 6-5
In Part 6-5 of the Feynman Portfolio Study I continue the theme of Risk Management with application of the SHY momentum filter, introduced in Part 6-4, to the periodically optimized and re-balanced “Dynamic” Feynman Portfolio analyzed in Part 3 of the Study. The results are characterized by a relatively smooth equity curve with low volatility […]
The Feynman Study: Part 6-4
In this Part 6-4 of the Feynman Portfolio Study I continue the theme of Risk Management as applied to Portfolios described in earlier Parts of the Study. In this Post I switch from the Moving Average filter, as discussed in Parts 6-1 to 6-3 of the Study, to a “Momentum” Filter and apply this filter […]
Index vs. Passive Investing
Harold R. Evensky, in his Wealth Management: The Financial Advisor’s Guide to Investing and Managing Client Assets book, makes a distinction between index and passive investing. Few readers are unaware of the differences between active and passive management, but the subtle definitions between index and passive management deserves some attention. I subscribe to the principles […]
The Feynman Study: Part 6-3
In this last Section of Part 6 of the Feynman Portfolio Study, covering the use of Moving Average (MA) filters as a tool for Risk Management, I apply the 195-Day EMA (ITARR) filter to the Feynman “Momentum” Portfolio introduced in Part 5 of the Study. Since the “Momentum” strategy is, by itself, a dynamically adjusting […]
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