100 Level

What is ITA Wealth Management About?

There are times when it is useful to step back and analyze reasons for writing this blog.  What is ITA Wealth Management about? 1.  First and foremost, this blog is an educational tool for all levels of investors. Beginning investors should click on the Beginning Investors category found over on the right-hand edge of the page. Then read the "Critical Information" … [Read More...]

ITA Wealth Management: An Investment Blog For Serious Investors

ITA Wealth Management is a blog that espouses the virtues of saving, living a modest life-style, index investing, asset allocation, value loading, and portfolio rebalancing.  Readers coming to this blog understand the importance of saving and living a modest life-style.  If not, search for "The Golden Rule of Investing."  Index investing, particularly when it comes to … [Read More...]

300 Level

QPP Analysis of Conservative Portfolio

One of the services for Platinum members is to run an evaluation of their portfolio, and this is such an analysis.  Readers will see the Quantext Portfolio Planner (QPP) projections for a portfolio that holds several Canadian ETFs.  One note of interest.  The VSB.TO does not have a three-year record, so that will skew the results, particularly since 20% of the portfolio is allocated to that … [Read More...]

Preparation for Kenilworth Review

In preparation for the Kenilworth portfolio review, I recorded all the current securities and shares in each ETF.  Below is the Buy-Hold-Sell Recommendation data table. Kenilworth Buy-Hold-Sell Recommendations:  Checking down over the 195-Day EMA column, only VWO shows up and it is only to release 10 shares.  That is too few to worry about so there are no immediate sell orders to consider.  … [Read More...]

200 Level

Feynman Portfolio Study – Part 1

This first Part of the Study identifies the 10 Asset Groups and 18 individual EFTs that comprise the Feynman Portfolio and looks at the general market behavior, as defined by the Vanguard Total Stock Market Fund (VTSMX), over the 6 year period from 06/29/2007 to 06/30/2003.  The VTSMX will be used as the reference, or benchmark, for comparison of portfolio performance through each future phase of … [Read More...]

Active vs. Passive Investing: Part 6

Section Six of the Active vs. Passive Investing paper includes a number of salient points.  The author begins his argument with this position. "The academic research seems to avoid addressing this issue head on.  There are always very good reasons to disregard their conclusions due to methodology.  One really objectionable practice is to pretend to be measuring … [Read More...]

400 Level

ITA RR Style Portfolio

Planning a Risk Reduction Portfolio Special note to Platinum members: I've been working on an asset allocation plan that I think would work for an ITA Risk Reduction (ITARR) style portfolio.  Below is the screen shot of the QPP analysis of such a portfolio.  In the current analysis, only seven of the 10 ETFs are used.  SDS would only come into play under extreme conditions. … [Read More...]

What Is A Good Sortino Ratio?

Before answering the above question, one needs to know what the Sortino Ratio is measuring.  Here is the Wikipedia definition.  To keep this idea as simple as possible, write down the equation, S = (R - T)/DR.  S = Sortino Ratio. The R is the Internal Rate of Return (IRR) for the portfolio.  If you are using the TLH Spreadsheet*, the IRR is calculated for you by the Excel™ SS. T is the … [Read More...]