100 Level

Use of Leveraged ETFs

Leveraged ETFs are generally not a great investment for a long term investment since they do not necessarily behave as we might expect. One is a simple mathematical reason. Consider the 2 scenarios shown in the table below. The first scenario considers a stock that moves sideways by moving up 1% one day, down 1% the next and repeats this pattern. The second scenario is a bullish scenario where the … [Read More...]

What Are Your Biggest Investment Questions?

Whether you are a seasoned or beginning investor, there are bound to be investment questions.  What are the two or three major ones that come to mind?  Here are a few to get readers thinking. I simply don't know where to begin. What is asset allocation and why is it considered important? What is an index fund and how does it differ from a mutual fund?  Is there any … [Read More...]

300 Level

Bohr Portfolio Update: 24 September 2012

Several changes took place in the Bohr Portfolio since the last update.  I sold shares of VOT in order to bring mid-cap growth into balance.  I also sold a few shares of VTV, but large-cap value is still 1.1% above target.  Cash from these sales was used to purchase VWO, PCY, and DBC.  Emerging markets and commodities are within target limits, but I still need to pick up more … [Read More...]

Smartest Low-Medium Risk Portfolio

With this low-medium risk portfolio we move up one notch in aggressiveness. This is still a very conservative portfolio with 60% committed to the bond/income asset class. Moving from 80% in bonds down to 60% brings about an increase in both projected return and projected uncertainty.  The Return/Uncertainty ratio is still a respectable 0.62. Platinum membership is available for a low $5.00 … [Read More...]

200 Level

Portfolio Stress Test: Part I

Stress Testing the Curie Portfolio Investors experienced a traumatic year in 2008 and it will likely happen again.  Are you prepared to deal with the risk? In the next two blog entries I will walk readers through a portfolio stress test using the Curie Portfolio.  To work through this analysis, I will use the Monte Carlo software, Quantext Portfolio Planner (QPP).  Most of you are … [Read More...]

Schrodinger Portfolio Review: 3 July 2012

Passive is the key word when it comes to managing the Schrodinger Portfolio.  No transactions occurred over the last several months except to add dividends to the cash account.  All asset classes are in balance as shown in the following Dashboard worksheet.  We use sixteen asset classes in this portfolio as I have never added international bonds to the mix. … [Read More...]

400 Level

ITA Risk Reduction Update

Where do we stand with ETF prices and their respective 195-Day Exponential Moving Averages?  As I am updating all the portfolios this month, I am paying close attention to the five (Maxwell, Euclid, Madison, Kenilworth, and Gauss) portfolios to see if changes are necessary based on the ITARR model.  I checked all the primary ETFs used to populate the asset classes and all are priced above their … [Read More...]

Efficient Frontier: A Brief Explanation

In preparation for a fresh design of this blog I asked for suggestions how to improve the "look and feel" of ITA Wealth Management.  Several suggestions focused on the need for further explanation of some of the technical aspects of investing.  Before going too technical, keep in mind that as investors, we continually ask the question - "What portfolio will produce the most return for the least … [Read More...]