100 Level

Eight Asset Porfolio

Photograph: When I first walked Devastation Trail in late 1961 or early 1962, there was no vegetation to be seen as it was soon after the eruption. Consider the following portfolio that holds eight assets including cash.  In this analysis, I am using the 20-year treasury ETF, TLT, to represent cash, a substitution that gives the portfolio a slight boost over current money market rates.  … [Read More...]

Dividend ETFs & Commodities

We are always on the lookout for ways to diversify a portfolio.  Platinum readers see this in our QPP analysis efforts.  Here are a few references of ways to diversify using dividend oriented ETFs and commodities.  Let's begin with dividend references.  One place to go for yield is to search out bonds.  I use a number of bond ETFs in different portfolios depending on … [Read More...]

300 Level

Bohr Portfolio Review

Since the last update some 33 days ago, shares were added to VTI, VTV, VCR and Berkshire Hathaway (BRK-B) was added to the Bohr.  Yesterday I sold off 100 shares of RWX, but still hold too many based on the optimizer guidelines. Efficient Frontier:  Since the last saved efficient frontier the adjustments in the securities lifted the graph a minor amount.  Berkshire Hathaway (BRK-B or BRK.B) was … [Read More...]

“Creme List” for 4/1/2011

This is no fools list of interesting companies, even though we are not advocates for building portfolios through the process of stock selection.  Only 17 stocks made the list this week.  Three companies were culled from the list since they have not scored over the last 13 weeks.  Those eliminated were: FDO, MMM, and T.  One new company is back on the list after many weeks of … [Read More...]

200 Level

Portfolio Construction Using David Swensen Percentage Guidelines

David Swensen writes in his "Unconventional Success" book, "Construction of a financial-asset portfolio involves full measures of science and art.  The science encompasses the application of basic investment principles to the problem of combining core asset classes in an efficient, cost-effective manner.  The art concerns the use of common-sense judgment in the challenge … [Read More...]

Portfolio Performance: 4 November 2011

Below is the performance table for the 21 portfolios tracked here at ITA Wealth Management.  SR is the Sortino Ratio, IR represents the Information Ratio, and RR is our own Retirement Ratio.  I'm still in catchup mode so a number of portfolios are not current.  I will be working on updating all portfolios next week.  Readers will note the portfolios tracked using Captool … [Read More...]

400 Level

Retirement Ratio: Portfolio Performance and Uncertainty Measurement

What is the Retirement Ratio (RR)?  I never heard of such a ratio, at least as it is defined below.  Before going into an explanation, let me digress and address similar ratios.  Portfolio performance measurements that combine both return and risk are readily available to investors.  The Sharpe ratio is perhaps the best known "efficiency ratio" where it measures the … [Read More...]

Bullish Percent Indicators For Major Markets

Below is the current data for the Bullish Percent Indicators.  The big changes this week showed up in the NASDAQ 100 and S&P 500 as both dropped sufficiently to hand the ball over to the defense.  In another post I will show the sector breakdown, but I can tell readers that energy is going through the roof.  The hot weather on the east coast is moving a lot of money into the … [Read More...]