100 Level

Avoiding Losses

How does one avoid major losses to the portfolio? Here are the two simple Faber - Richardson rules. … [Read More...]

Ten Biggest Investor Mistakes – #6

  ITA Wealth Management Mistake #6:  Insufficient Diversification   It is a mistake to think your portfolio is properly diversified simply because you have chosen stocks or index funds across differing sectors. That’s not enough.  Investing across all sectors will not coverall asset classes, but investing across all asset classes will cover all sectors.  There is … [Read More...]

300 Level

Sortino Ratio: Revised Calculation

Platinum members likely picked up my reference on the new Sortino Ratio (SR) calculation in the comments section.  When you first log on to ITA Wealth Management, be sure to check for the latest comments or better still, sign up for a comments RSS.  What is changing with the SR calculation? … [Read More...]

Kenilworth Portfolio Review: 8 August 2011

Below is the Strategic Asset Allocation plan for the Kenilworth Portfolio.  It is not unexpected to see this young portfolio dip into negative territory considering the severity of this bear market.  As Rep. Boehner stated, "I got 98% of what I wanted."  Now we are witnessing exactly what he meant by that statement.  The Kenilworth, as is the case with most … [Read More...]

200 Level

Retirement Requirements: Stress Testing the Gauss Portfolio

Assume you are using the Gauss Portfolio asset allocation plan for your retirement portfolio and you want to know if you can survive a three sigma event just prior to retirement.  The provided link or the Dashboard shown below lays out the Strategic Asset Allocation plan for the Gauss.  What is required in the way of savings for a 40-year old who has only saved $100,000 thus far and expects to … [Read More...]

Kenilworth Portfolio Review: 19 December 2011

Since the Kenilworth Portfolio is lagging its VTSMX benchmark, I am paying closer attention to the asset allocation.  In addition, the Kenilworth is a candidate for the ITA Risk Reduction model.  Checking moments ago, all critical ETFs with exception of domestic REITs (VNQ) are priced below their respective 195-Day EMFs.  No limit orders are in place for the Kenilworth and we are in … [Read More...]

400 Level

A Twist to the ITA Risk Reduction Model

Photograph: Mountains near Emerald Bay at Lake Tahoe.  Taken from the California side of the lake. While we want to keep the ITA Risk Reduction model as simple as possible, there is another wrinkle available for sophisticated investors.  Platinum readers will be interested in the explanation that follows. Platinum membership is available for $5.00 per month.  Learn how to reduce … [Read More...]

The Delta Factor and International Markets

Recently I was looking at Price-195-Day EMA graphs for a number of international countries and I came upon one for Italy, a country in distress.  While I normally view this graph over a one-year period to gain additional clarity, I changed the scale to three years as that is the time frame I used for the QPP and Delta Factor analysis.  I noticed that EWI hit a peak around May of 2012.  As a … [Read More...]