100 Level

Grandchildren: Seek the Best Education Possible

Photograph: Bay at Le Havre, France It is difficult to over emphasize the importance of a good education.  In our family there was never any discussion about whether or not we were going to college.  It was a given.  My father set the standard when he desired an education so much that he not only paid his way through college, but he also paid to have someone replace him on the … [Read More...]

Is It Wise To Pay An Advisor For Access To DFA Funds?

Save the Fees Save the fees and manage your own money using low cost ETFs.  You are going to be dollars ahead and here is the evidence.  Let me describe the process I went though to come to this conclusion - and I am not finished with the analysis.  This data is not going to win me friends among DFA advisors. I logged on to one of the premier web sites on the Internet to find … [Read More...]

300 Level

Momentum-Optimization Model

If you have not checked into ITA for several weeks, you are missing critical information and I hope you will carefully read this blog post as this marks a revision of the ITA Risk Reduction Model.  While I will not take the time to explain every detail in one blog post, readers will see the Optimization-Momentum Model in action over the next weeks and months.  Over time I want to demonstrate how … [Read More...]

ITA Index: Recalibration

Photograph: Cologne Cathedral - Photo by Ken Appel   Recalculation of ITA Index As I mentioned in a comment yesterday, I've come to the conclusion that the ITA Index needs a calculation overhaul.  Instead of using each and every asset class from the "Big Nine" U. S. equity classes, I am lumping all of these asset classes into one benchmark and that is the reliable VTSMX index fund.  In … [Read More...]

200 Level

Gauss Portfolio: Updated Dashboard Reflecting Risk Reduction Model

The Gauss Portfolio is now ready for a 30-Day nap.  With all the critical ETFs above their 195-Day Exponential Moving Averages (EMAs), all required purchases were made this morning.  The following Dashboard shows the asset classes are in balance. … [Read More...]

Portfolio Performance – 20 August 2010

For some reason, I expected to see greater decline in the Internal Rate of Return (IRR) values this week.  In a number of cases, the portfolios picked up a little ground on the performance of the VTSMX. Obviously, this is due to the broad diversity of the asset classes held in the portfolios. In a few cases, the ITA Index increased significantly and that is due to the addition of … [Read More...]

400 Level

Momentum-Optimization Model (MOM) YouTube Presentations

Platinum members using the Momentum-Optimization Model (MOM) spreadsheet will find two help sessions at this address. http://www.youtube.com/user/Physlab Look for Momentum-Optimization and Momentum-Optimization Part 2.  Keep in mind that the resolution is not the greatest when viewing material on YouTube.  At least the Camtasia recordings are not as sharp as I prefer. Lowell   … [Read More...]

Risk-Parity: Is This Portfolio For You?

A Close Look At A Risk-Parity Portfolio* The idea of risk-parity has been around for a number of years, if not by name, certainly by concept.  Risk-Parity is an alternative method of constructing portfolios.  Instead of building a portfolio around allocation of capital the portfolio is emphasis is placed on allocation of risk.  All eleven portfolios tracked here at ITA Wealth … [Read More...]