This blog will make a lot more sense if you are able to capture and read Edward Qian’s article, Risk Parity Allocation.  This blog post is a brief description of how risk is calculated.  This not for the mathematically squeamish, but the concept is not difficult if one can get past one step in the logic.  […]

Two international ETFs lost ground over the last few trading days.  Both VEU and IDV are now performing below SHY as Platinum members can see from the rankings table shown below. ETF Rankings:  Based on the following data we will continue to lower allocations to asset classes such as Commodities (DBC), Gold (GLD), International REITs […]

Even though some of us may have been wary of the continuing strength of the markets for a few months now, over the past week, we may have been getting the feeling that some signs of weakness are beginning to show in the markets. In a standard margin account we could consider shorting assets to […]

Zion National Park On page 167 of Mebane T. Faber and Eric W. Richardson’s book, “The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets” we read, “Our research has shown that returns are lower and volatility is higher when asset classes are below the 10-month moving average.”  What investor is […]

Readers who have been following the discussion on future return projections will find the following information of interest.  Using the Hoadley “Efficient Frontier” software, I set out to see what the optimal projections would be for three different time periods.  In each case I selected two years of historical data as that is the default […]

This is a quick post to prepare Platinum members for the coming week.  Take a look at the ETFs that are under-performing SHY.  Those are the ETFs to move out of the portfolio.  Pay particular attention to ETFs with negative absolute acceleration.  TLT, VNQ, and GLD are on my chopping bloc as all three are […]