Valuation’s Usefulness for Forecasting and Setting Asset Allocation

Dividend yields, price-earnings ratios and cyclically adjusted price-earnings ratios have long been used to forecast long-term stock returns, which may lead some investors to believe that these multiples can also be valuable tools for asset allocation. A dividend yield (D/P) is defined as a company’s dividends per share divided by the current stock price; a…

 

Computerized Investing’s New May 2017 Content

Computerized Investing’s new May content is now available! This month includes: Learn the Market With Equities Lab Henry Crutcher, founder of Equities Lab LLC, gives an overview of the Equities Lab tool and how it aids the individual investor. Spreadsheet Corner: An Update to the CI Portfolio Tracker in Google Sheets Adding a variety of…

 

An EZ Approach to ETF Portfolio Building

As investment products increase in number, complexity and cost, many individuals are plaintively searching for an investment approach guided by two very basic principles: Keep it simple, and Keep it cheap. Exchange-traded funds (ETFs) offer a useful starting point for such an investment approach. But with more than 1,400 index-based and actively managed ETFs domiciled…

 

For Long-Term Investors, the Focus Should Be on Risk

There is a common notion that stocks, at least if held for a long-time, usually outperform other assets, so that stocks should be the cornerstone of any long-term portfolio. If, when this idea is presented, you protest: “Wait a minute. Stocks are also risky!” the reply is either, “Stocks have done well in the past…

 

How to Take Your Emotions Out of the Sell Decision

Facing criticism from a colleague over modifications he made in his economic analysis, the famous British economist John Maynard Keynes once said: “When the facts change, I change my mind. What do you do, sir?” Keynes’ question is a relevant one for investors. Unless you are a buy-and-hold-forever investor, you will frequently be faced with…

 

Building a Balanced Portfolio: An Unconventional Allocation

It is easy to make money when the stock market is soaring. You really don’t need to read this article to prosper during those favorable environments. However, as experienced investors know, the key to long-term financial success is to survive the troughs. How does your portfolio perform during severe downturns? How vulnerable is it to…

 

Computerized Investing February Edition

The February edition of Computerized Investing is now available! This month includes: The Top 11 Sites for Personal Finance, Retirement Planning and Tax Resources An update of the websites that offer the best guidance and tools for personal financial planning issues, including budgeting, handling your taxes and getting ready for retirement. Building a Stock Screen…

 

The Advantages of Simple Allocation Strategies

 Investors are undoubtedly familiar with the concept of diversification, which is a fundamental idea underlying modern portfolio theory. The phrase, “Don’t put all your eggs in one basket” is one that has been familiar to investors for thousands of years. At least intuitively, it has been so since ancient Roman entrepreneurs diversified against the loss…

 

Computerized Investing January Edition

The January Edition of Computerized Investing is now available! This month includes: Using Asset Class Rotations to Reduce Portfolio Risk and Increase Return Using an asset rotation strategy is a simple way to improve your portfolio’s performance, but you need the right tools to carry it out. Top Robo-Adviser Trends, According to the Experts Robo-Advisor…