CapitalTime

Articles on investing and capital management, with a quantitative focus.


Topics

#bigpicture - Big picture thoughts
#prp - Permanent Risk Parity (how I invest)
#xiutop - Top stocks of XIU index
#bullsignals - Algorithm-driven market timing
#growth - My portfolio of growth stocks


2020-01-11

XIU.top Update

At year end, I evaluted the XIU.top portfolio and went through the update methodology. Remember that this is not a buy-and-hold... #xiutop

2020-01-09

PRP Performance

The PRP gained 13.3% in 2019, the largest annual return in the 24 year history. This was an unusually strong year... #prp

2019-12-30

Scaling down my market timing

Although my BullSignals market timing has given reasonable results for a few years, I've decided to scale down... #bullsignals

2019-12-27

Growth Portfolio 6 Month Update

My Growth portfolio slightly outperformed the TSX in this time period. Performance has been strong since inception 3 years ago... #growth

2019-11-19

Trouble Investing New Money

Are you having trouble investing new money? Are concerns about an overvalued stock market preventing you from making purchases?... #bigpicture

2019-11-05

I am not a Tortoise

According to Wikipedia, most tortoise species can live to around 100 years, with some living over 150 years... #bigpicture

2019-10-22

Backtesting with the Portfolio Visualizer

One of my favourite investment-related web sites is the Portfolio Visualizer, a collection of analysis tools that can be used to study the behaviour... #bigpicture

2019-09-06

Buy Signal

My market timing algorithm gave a buy signal today, September 6. After two weeks in cash, this resumes a long position in stocks. #bullsignals

2019-08-25

XIU.top methodology

The XIU.top method uses individual stocks to approximate the TSX 60 index by holding the largest weight (largest market cap)... #xiutop

2019-08-21

Sell Signal

My market timing algorithm gave a sell signal today, August 21. This gives a +6.4% total return in XIU and +9.4% total return in SPY.... #bullsignals

2019-08-13

Choosing My Asset Allocation

I've described some details of risk parity, but I should explain how I arrived at my PRP asset allocation. There is no ideal single asset allocation... #bigpicture

2019-08-12

Derivation of a Risk Parity Portfolio

After learning about the risk parity concept, I tried deriving my own portfolio using three uncorrelated assets that I like... #prp

2019-07-26

What is Risk?

As far as I know, there is no universally accepted definition of risk for investment modelling. Modern Portfolio Theory (MPT), introduced by Markowitz... #prp

2019-07-17

I don't know what the market will do

I don't know how the economy will behave, if we'll get runaway inflation, and if stocks will continue to do well. #bigpicture

2019-07-03

Risk Parity Doesn't Require Leverage

There are many variants of risk parity. Some risk parity hedge funds use leverage. Others dynamically adjust weights... #prp

2019-06-24

Risk Parity - Basics

Harry Markowitz, recipient of the Nobel Prize in Economics, called diversification 'the only free lunch in finance'... #prp

2019-06-19

Growth Portfolio 6 Month Update

My growth portfolio outperformed the TSX by several percent in this time period, continuing to show strong performance since inception... #growth

2019-06-13

BullSignals Basics

My algorithm evaluates stock market strength and tries to detect periods of high risk... #bullsignals

2019-06-08

Timing the market is probably a bad idea

I'm aware that it's generally a bad idea to try "market timing". Trading in and out of the market usually gives worse performance... #bullsignals

2019-06-07

Investment goals

Here, I describe my own investment goals to provide context for the articles I write... #bigpicture

2019-06-05

We are shaped by our experiences

Investing can mean different things to different people, and not everyone has the same priorities... #bigpicture