100 Level

Quantitative Easing Explained

ITA Wealth Management readers will find this video clip of interest. … [Read More...]

ETF Commandments

Nearly two years ago I referred ITA readers to this link.  There were only a few readers at that time and not many folks picked up the reference.  By brining this blog forward, readers have another chance to see the reference and also check to see if the blog notification plugin is working properly. An Internet friend directed me to this article titled, "Ten Commandments of ETF … [Read More...]

300 Level

Bohr Portfolio Modifications

I made a few changes in the Strategic Asset Allocation plan for the Bohr Portfolio.  I am planning to sell off the holdings in mid-cap blend and small-cap blend, something I indicated I might do with the Einstein.  Those dollars will be moved to small-cap value in keeping with the Fama-French research. … [Read More...]

Risk Adjusted vs. Capitalization Asset Allocation Portfolio Construction

Is it better to construct a portfolio based on allocating assets around capitalization divisions or is one better off using a risk adjusted platform?  The following two screen shots show the details of these two approaches to portfolio construction.  In each case I am using ten ETFs that provide worldwide diversity.  Four years of historical data goes into the following Quantext … [Read More...]

200 Level

Asset Allocation: Working With Optimizer

How does one combine the power of the Dashboard and the Hoadley optimizer when it comes to setting up an asset allocation plan for a portfolio.  ITA readers are familiar with the Dashboard as it is shown every time a portfolio is updated.  In this post I will explain how one might combine the Dashboard and Hoadley optimizer.  Since the Hoadley optimizer is confined to nine (9) asset classes, I've … [Read More...]

Hedging the Simple Seven ETF Portfolio

In the last blog entry yesterday, I proposed a simple seven ETF portfolio that generated a Return/Uncertainty ratio of 0.57.  This is very close to our baseline of something greater than 0.60.  In the following portfolio, assume one sold off the 10% holding in VTI and shifted those assets over to the ultra-short SDS ETF.  There needs to be some reason for making the shift, but for … [Read More...]

400 Level

Bullish Percent Indicators Update: 7 September 2012

Despite the strong market today, several sectors and one index handed the ball over to the defense.  Check the tables to see which areas of the market moved from X's in the right-hand column over to O's. … [Read More...]

Playing Defense With The “Holy Grail” Portfolio

While there is no such thing as a "Holy Grail" portfolio, humor me for a few minutes and think of this simple seven ETF portfolio as a sound basic portfolio. The purpose of this post is to test how one might play portfolio defense and when is such a move necessary.  First, we take a look at the current QPP analysis for this seven ETF portfolio. Platinum membership is available for … [Read More...]