100 Level

Ten Biggest Investor Mistakes – # 8

  ITA Wealth Management Mistake #8:  Over confident and lacks patience.   Over confidence and lack of patience manifests itself in a number of ways. If you think you can beat the market by picking individual stocks, be very careful.  If you want to test your skills, set up two portfolios.  Use a passive approach with one and build it along the lines of portfolios … [Read More...]

Motley Fools, Passive & Active Investing

Photograph:  Mt. Bachelor in Central Oregon If you need more evidence to support passive rather than active investing, here is another article on what is happening over on the Motley Fools web site.  In the 1990s, I was a regular reader of material on the Fools site. At the time is was the most popular investment web site to visit.  I devoured their popular book, "The Motley … [Read More...]

300 Level

Einstein Portfolio Review

Since the last update 33 days ago, shares of VWO, EMB, DBC, and GTU were sold and shares of VOE and VTI were purchased.  The Hoadley Optimizer recommended eliminating EMB, DBC, and GTU and we still need more shares of VOE in the portfolio. Einstein Dashboard:  Due to some action this past month, this Dashboard looks a little bloody.  I'll be readjusting the Strategic Asset Allocation plan to … [Read More...]

Harry Browne’s Permanent Portfolio

Risk-Parity Look at Permanent Portfolio Much is written about Harry Browne's Permanent Portfolio, particularly since it held up well during the "Black Swan" markets of the early 21st century.  Below is a look at the equal allocation plan as advocated by Browne, and a Risk-Parity examination of the same four asset classes.  Both the equal allocation and Risk-Parity … [Read More...]

200 Level

Index vs. Passive Investing

Harold R. Evensky, in his Wealth Management: The Financial Advisor's Guide to Investing and Managing Client Assets book, makes a distinction between index and passive investing.  The distinctions can be found at this location.  Few readers are unaware of the differences between active and passive management, but the subtle definitions between index and passive management deserves some … [Read More...]

Going Wobbly On Equities

With the market hovering around all-time highs, perhaps it is time to "go wobbly" on equities.  What might a 20-ETF portfolio look like if the bond requirement were elevated to 30% of the portfolio.  The following is not an operational portfolio, but a sample of securities one might use to build a well-diversified portfolio. Efficient Frontier:  One ETF stands out in the following graph and it … [Read More...]

400 Level

Portfolio Performance

Photograph:  Dome of Blue Mosque in Istanbul, Turkey If you hear someone come across a bit strong when it comes to portfolio performance, ask a few simple straight-forward questions. 1.  How is the performance measured and does it meet AIMR standards?  Professionals will know AIMR stands for Association for Investment Management and Research.  ITA Wealth Management readers … [Read More...]

Sortino Ratio: Revised Calculation

Platinum members likely picked up my reference on the new Sortino Ratio (SR) calculation in the comments section.  When you first log on to ITA Wealth Management, be sure to check for the latest comments or better still, sign up for a comments RSS.  What is changing with the SR calculation? … [Read More...]