Jul 27
Portfolio Management: An Example
A few minutes ago I laid out the particulars of portfolio management for a portfolio tracked and managed over on the Premium Content side of this blog. The basic process goes as follows.
I first open up T/L/H, the spreadsheet I use to track both portfolio performance and three different benchmarks. Within this spreadsheet is an asset allocation worksheet. Upon further examination of the Dashboard worksheet, I noticed that four asset classes were under target and another asset class was nearly out of target range on the low side. Attention was required. Also, this portfolio has available cash for investing.
The next move was to open up the Quantext Portfolio Planner (QPP) software to see if any of these five asset classes were signaling a potential “Buy” signal. While the basic QPP program does not indicate buy or sell signals, I’ve developed a specialized worksheet to provide such signals. Using this worksheet, named “Delta,” I found two of the four asset classes currently signal a “Buy.” Following these guidelines, I placed limit orders for ETFs that cover the asset classes that need attention. The number of shares, limit order prices, and asset class identification are all available over on “Premium.” A limit order was also placed for a corporate bond ETF as the bond allocation was well below target.
This process gives one a basic outline how one goes about conducting portfolio management.
Lowell Herr
Photograph: Image of bumble bee photographed earlier this morning.
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