100 Level

Muling

Photograph: Fort in Savannah, GA Have you ever heard of "Muling?"  It was new term to me until this week when a former student sent me this URL.  Check it out. … [Read More...]

To Use or Not Use Short or Contra ETFs

ITA Wealth Management readers know that the ultra-short ETF, SDS, is held in several portfolios. That position may need more thought based on information from a recent article in the AAII Journal. SDS is an ultra-short or contra ETF. What that means is the SDS is designed to move in the opposite direction as the S&P 500. In fact, it is to move twice as fast in the opposite direction as the … [Read More...]

300 Level

Preparing the Maxwell for TAA Action

Platinum members interested in the quantitative approach to improving returns and reducing portfolio uncertainty for the Maxwell take note.  This morning shares of VTV and VOE were sold making room for VTI, VEU, VWO, VNQ, and RWX.  Check out the asset allocation plan below for this portfolio. … [Read More...]

Kenilworth Receives Cash Infusion

Last week two cash deposits came into the Kenilworth permitting more limit orders to be set in an effort to bring the asset classes into balance.  In the following screen shot, readers can view the current Strategic Asset Allocation plan and where we are in the building process for this young portfolio. Platinum members will recall, when this portfolio was launched, the plan was to build up … [Read More...]

200 Level

QPP Analysis of Actively Managed Mutual Fund Portfolio

Actively Managed Mutual Fund Portfolio The following QPP analysis is one where the portfolio is made up of actively managed mutual funds.  Long-time readers know my opinion about such funds, even though I used them throughout my teaching career.  It was a mistake.  Data was missing for JVLAX so I lumped the money market funds and the percentage (9.54%) held in JVLAX into … [Read More...]

Sample Retirement Portfolio

The following portfolio is one suggested by a Platinum member.  The first screenshot shows the original asset allocation.  For reference, the assumed growth for the S&P 500 is 7% annually.  Should I ever forget to include this assumption, readers can check by looking at the bottom right section (gray background) to see the projected return and projected standard deviation.  The time frame is … [Read More...]

400 Level

IVY-2: Ten ETF Portfolio

The second portfolio recommended by Faber and Richardson contains ten ETFs.  There are a few new asset classes added such as small-cap, emerging markets, and foreign or international REITs.  Are we able to improve the Return/Risk ratio and elevate the Diversification Metric with these additions?  Check the analysis below for the answer. A "seat of the pants" analysis … [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...]