100 Level

Return and Risk Relationship

What is the relationship between return of a portfolio and the associated risk involved? Quoting from an “Active vs. Passive” paper I found in my files. “High potential returns always involve high potential risks. There are no low-risk/high-return investments. Investment risk comes in many forms but, to most investors, risk means the potential for losing investment capital and … [Read More...]

Coming Investment Attractions

Now that I am back from vacation, what can you look forward to on this blog, ITA Wealth Management? Expect to see more of the admonitions to save, diversify, and monitor. The basic rules of investing are not going to change. Here are some specifics to anticipate. 1. Updating of all portfolios. 2. Special attention to the building of the Kenilworth Portfolio. 3. Updated "Creme List" of … [Read More...]

300 Level

Bohr Portfolio Examined

This month the Bohr Portfolio received an infusion of cash and reduced shares of TLT to pull down the percentage held in the over allocated bond/income asset class.  A few May dividends were added keeping the IRR for the portfolio well ahead of the VTSMX benchmark and in line with the ITA Index, a customized benchmark. Shown below is the current Dashboard for the Bohr.  Limit orders are … [Read More...]

X-Ray of Gauss Portfolio

The following two screen shots are the "X-Ray Analysis" of the Gauss Portfolio by Morningstar.  As you look over these results, how would you improve the make-up of this portfolio?  What ETFs would you add or subtract to improve the quality of this portfolio? I was unable to capture all the information in one screen shot and that is why the information is broken into two … [Read More...]

200 Level

Example Asset Allocation Plan

Photograph:  San Jose de Gracia Catholic Church - Built in 1760 - Las Trampas, New Mexico Are you looking for an example of a "Holy Grail" Strategic Asset Allocation plan?  Below is such an example.  Actually, it is the asset allocation plan of the Einstein Portfolio.  While I have only been tracking the Einstein Portfolio using the TLH Spreadsheet since 6/30/2008, … [Read More...]

Setting Up a Dividend Oriented Portfolio for Retirement

A number of months ago I came across advice from a Certified Financial Planner (CFP) that peaked my interest.  Using the data as given, what are the projections if one uses the Quantext Portfolio Planner (QPP) for the analysis?  Are the results similar to those posited by the CFP?  To answer the question, I set up a dividend oriented portfolio made up of fifteen ETFs.  Without … [Read More...]

400 Level

Bullish Percent Indicator Data

What we have in the following table is something called, major market Bullish Percent Indicators (BPI).  In this table I only included data from 2012.  Values coded with a red background indicate that the majority of companies are overbought and when the background is green, the majority of companies are oversold.  Nowhere in this table of major markets do we see an oversold … [Read More...]

Beyond the Sortino Ratio

      This article was published two years ago, but most readers missed it.  That is why I am bringing it forward again, with a few edits. Frank Sortino begins Chapter 3 of his "The Sortino Framework..." book with this sentence. "This chapter begins with the development of the Sortino ratio and why I discarded it for the upside potential ratio and Desired … [Read More...]