100 Level

Respighi’s “Pines of Rome”

While I recommended Ottorino Respighi's "Pines of Rome" back on August 29, 2010, it did not receive much attention at that time as it was a secondary selection.  This week I am making it my first selection, and as I wrote back in 2010, this is a must for any classical collection.  Here is one "Amazon" review that should further spark your interest in this piece of music. "Ever since Toscanini's … [Read More...]

Avoiding Losses

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

300 Level

Gauss Portfolio Update: 29 May 2012

With the market rebounding, portfolios such as the Gauss are taking a relative hit as we are on the sidelines with a number of asset classes.  In today's market we want to be fully invested in equities, particularly international equities.  I did manage to sell shares of VWO near the high of the day, so that is a plus.  The reason for selling is that VWO is still well below its … [Read More...]

Using Treasuries to Reduce Risk

Compare the following portfolio (QPP analysis) with the risk reducing portfolio I suggested last week.  In the following portfolio, I stripped percentages off several equity and REIT ETFs and allocated those assets to a combination of TIP and TLT.  While the projected return is reduced, the projected standard deviation comes down at a faster rate giving one a higher Return/Uncertainty … [Read More...]

200 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...]

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

Historical Basis for ITA Risk Reduction Model

A few days ago I was asked if there was any historical data supporting the ITA Risk Reduction (ITARR) model.  The quick answer is - no.  The model has been operational for about four months or insufficient time to build any sort of record.  However, I did use a similar model successfully during the 1980s.  There were a few differences in that model vs. the ITARR model.  … [Read More...]

Keeping It Simple With An Global Nine ETF Portfolio

A portfolio does not need to be complicated to be global in its structure.  Nor does it need to be all that complex to bring success to the investor.  The following portfolio is simple and stands a greater chance of success if one employs the Momentum-Optimization Model (MOM) as explained below. This material is not available for publication elsewhere on the Internet. … [Read More...]