100 Level

Fundamental Principles for Constructing a Portfolio

The "science" of portfolio construction requires numerous fundamental principles.  Long-term portfolios call for an orientation toward return or growth through proper diversification.  Growth needs to be tempered so as to handle times of recession, deflation, and inflation.  As described in the Harry Browne "Permanent Portfolio" one needs to prepare for the four stages of the market; prosperity, … [Read More...]

Risk Defined

Portfolio Risk Risk is a messy word as it carries so many different meanings in the investing world.  In the most general sense, it means we don't know what is going to happen.  Here are several specific meanings of the term.  We will begin by defining "systematic" and "specific" risk. 1.  "Systematic" risk is risk we cannot avoid if we seek returns higher than the interest rates from a money … [Read More...]

300 Level

QPP Analysis of Faber Ivy Ten Portfolio

Yesterday I analyzed the Faber-Richardson Five portfolio found in The Ivy Portfolio.  In this post, Platinum members will find the QPP analysis of the Faber-Rickardson Ten.  I used the same five-year time frame so readers can compare the two results.  Improvements and negatives come with this expanded portfolio. While the projected return moves up to 8.2%, we give up risk as the … [Read More...]

Curie Portfolio Update: 3 May 2012

Very little action took place within the Curie Portfolio this last month other than collecting dividends from NLY, SYK, and a number of ETFs.  In a sense, this is how it should be as we want to minimize buying and selling securities.  There is available cash so I will invest some of it in PCY or international bonds. … [Read More...]

200 Level

Portfolio Performance Update: 7 September 2012

It has been nearly a month since I last posted a Portfolio Performance data table.  The general overview for the eleven portfolios is that all gained absolute ground during the month of August, but nearly all lost relative ground to the ITA Index and VTSMX benchmarks.  There were a few exceptions. … [Read More...]

Twelve ETF Portfolio

When designing a portfolio several goals need to be considered.  Here is a blueprint for portfolio construction. Build the portfolio using non=managed ETFs and index funds.  Don't over complicate by using too many ETFs. Keep costs low by using inexpensive ETFs.  For most investments we use Vanguard ETFs. When running a QPP analysis, set these standards. Projected … [Read More...]

400 Level

Measures of Portfolio Risk

  Calculating Portfolio Risk If you have been following the ITA Wealth Management blog closely you know that I have been delving into portfolio risk with interest and intensity.  This morning I pulled William J. Bernstein's first investment book off the shelf to see if he had anything to add to this discussion.  Sure enough, "The Intelligent Asset Allocator" includes … [Read More...]

“Delta Factor” for Sector Portfolio

What is the "Delta Factor" projecting for the eleven sectors of the market?  Based on recent analysis, the international market is over bought.  Is the same true for the U.S. Equities market? Checking out the data table below, three years of historical data indicate the same over bought condition exists for the U.S. market. … [Read More...]