Basics: Lazy portfolios

What is a lazy porfolio? Lazy portfolios are do-it-yourself porfolios for passive investors. Paul B.Farrel is tracking the performance of the porfolio. Return of the lazy portfolio is higher then the S&P500. You also watch his video.

Performance of the lazy porfolio

Fund	Allocation	1-year return	3-year annu. return	5-year annu. return
Vanguard Total Stock Market Index	60%	11.10%	10.81%	7.50%
Vanguard Total International Stock Index	30%	20.14	20.64	16.56
Vanguard Total Bond Market Index	10%	6.45	3.17	4.87
Total portfolio	100%	13.35	13.00	9.96
S&P 500 Index		11.83	10.06	6.27

Basics: Lazy portfolios

What is a lazy porfolio? Lazy portfolios are do-it-yourself porfolios for passive investors. Paul B.Farrel is tracking the performance of the porfolio. Return of the lazy portfolio is higher then the S&P500. You also watch his video.

Performance of the lazy porfolio

Fund	Allocation	1-year return	3-year annu. return	5-year annu. return
Vanguard Total Stock Market Index	60%	11.10%	10.81%	7.50%
Vanguard Total International Stock Index	30%	20.14	20.64	16.56
Vanguard Total Bond Market Index	10%	6.45	3.17	4.87
Total portfolio	100%	13.35	13.00	9.96
S&P 500 Index		11.83	10.06	6.27

Basics: Moving average lines & Put/Call ratio

MOVING AVERAGE LINES
Technical analyst are using the moving average prices of historical stock prices to analyze the long term trends. They are using two techniques first if 50-day moving average is above the 200 day moving average line that is an indicator of the bullish market inverse is true for bearish market. Secondly, if stock prices go above the moving average line accompanied by the volume increas, this is a bullish indicator.

We are using 200 day and 50 day moving average for on a 3 years prices chart. You can use shorter moving average depending on your analysis period.



PUT/CALL RATIO
The chicago board options exchange(CBOE) Put/Call Ratio is used by technicians. A high put/call ratio indicates a bearish indicator for technicians. Barrons.com pubslishes this ratio with additional comment.

Source: Investment Anylsis and portfolio managment, Reilly&Brown,7th edition, page 633, 639

Basics: Moving average lines & Put/Call ratio

MOVING AVERAGE LINES
Technical analyst are using the moving average prices of historical stock prices to analyze the long term trends. They are using two techniques first if 50-day moving average is above the 200 day moving average line that is an indicator of the bullish market inverse is true for bearish market. Secondly, if stock prices go above the moving average line accompanied by the volume increas, this is a bullish indicator.

We are using 200 day and 50 day moving average for on a 3 years prices chart. You can use shorter moving average depending on your analysis period.



PUT/CALL RATIO
The chicago board options exchange(CBOE) Put/Call Ratio is used by technicians. A high put/call ratio indicates a bearish indicator for technicians. Barrons.com pubslishes this ratio with additional comment.

Source: Investment Anylsis and portfolio managment, Reilly&Brown,7th edition, page 633, 639

Business cycles and sector rotation

Here are some pictures to identify the business cycles and to analyze the M of the CANSLIM method.



"The chart obviously simplifies a lot of detail but should give you a graphical understanding of the relationships between sectors and the state of the economy. You can also go the other way -- looking at the relative performance of the sectors to see where the economy is heading. You can do this by viewing Smart Money's Market Map or looking at Stock Chart's sector performance charts or StockChart's market view.




S&P has a similar classification.

You can read the regular columns of the sector rotation guru Sam Stavoll at Business Week's online web site.

You might want to check the industry rankings at the http://www.rabbittanalytics.com.

Source:
[1] http://www.heroncapital.com/sectormodel.html
[2] http://www.businessweek.com/investor/list/stovall_toc01.htm

Business cycles and sector rotation

Here are some pictures to identify the business cycles and to analyze the M of the CANSLIM method.



"The chart obviously simplifies a lot of detail but should give you a graphical understanding of the relationships between sectors and the state of the economy. You can also go the other way -- looking at the relative performance of the sectors to see where the economy is heading. You can do this by viewing Smart Money's Market Map or looking at Stock Chart's sector performance charts or StockChart's market view.




S&P has a similar classification.

You can read the regular columns of the sector rotation guru Sam Stavoll at Business Week's online web site.

You might want to check the industry rankings at the http://www.rabbittanalytics.com.

Source:
[1] http://www.heroncapital.com/sectormodel.html
[2] http://www.businessweek.com/investor/list/stovall_toc01.htm

M of CANSLIM

CANSLIM suggests that you should study general market every they. It recommends to study three indicies.

S&P500: consisting of 500 compannies, this index is broader, more modern presentation of market action than the Dow.

Dow Jones industrial average(DJIA):This index consist of 30 widely traded stocks, and while it used to focus primarly on large, cyclical, industrial issues, it has broadened a little in recent years to include companies like coca-cola and home depot. it is a simple but rather out-of-date average to study because it is dominated by established, old-line companies that grow more slowly than today's more modern, enterpreneurial companies. Also its 30 stocks can be more easily manipulated.

The Nasdaq Composite: The more relevant and volatile index in recent years, the Nasdaq is home to the market's younger, more innovative and fast-growing companies. It includes 4000 companies that trade view the Nasdaq network of market makers, and it is more heavily weighted toward the technology sector.
Source: How to make money in stocks, william j.o'neil, page 48