100 Level

Thinking Through a Basic ETF Portfolio

Thinking through the process of constructing the following ETF rich portfolio several required specific goals be met. This material is not for publication elsewhere on the Internet. The portfolio needed to be simple.  While 15 ETFs are not exactly simple, neither is it overly complicated.  To simplify one could reduce the number of bond and treasury ETFs. All ETFs must be commission free … [Read More...]

Precious Metals and European Crisis

Precious Metals React Badly to European Crisis In times of economic uncertainty, a wise investor would hedge their market bets with silver and gold in hopes of a future payday. They would either buy precious metals in bullion and coins or invest in stocks related to precious metals, like mining stocks. Historically, precious metals are considered "safe havens" when the stock market may … [Read More...]

300 Level

Optimized QPP Analysis of Schrodinger: Part 3

The first thing one sees in the following analysis is that optimizing the Schrodinger basic asset allocation plan does nothing to improve the future projections.  Here are the results. … [Read More...]

“Delta Factor” Update for Bonds

It has been several weeks since I posted information on the "Delta Factor" for bonds.  I don't pay a lot of serious attention to this information, but I do observe the projections to see if there are elements of interest.  In this post, Vale Capital II (CJS) stands out as a possibility.  I'm not familiar with CJS.  I recall a reader of this blog asked that … [Read More...]

200 Level

Optimization Correction For 12 ETF Portfolio

Here are the following assumptions I used to create the portfolio shown below.  1)  The S&P 500 is assumed to grow at 7% per year.  This percentage is adjusted by setting the Delta Return to -3.3% inside the QPP software.  2) I used five years of data running from 2/6/2008 through 2/6/2013.  3) The Solver Parameters are listed below. The following material is not available for publication … [Read More...]

Searching for the Strategic Asset Allocation Holy Grail

Establishing a strategic asset allocation (SAA) plan for a portfolio requires at least two major decisions.  1) What asset classes should be included in the portfolio.  2) What percentage of the total portfolio is allocated to each asset class.  Decision number two is the more difficult of the two.  Where do I come up with the various asset allocation plans found in the various … [Read More...]

400 Level

Bullish Percent Indicators for Week of 8 March 2013

For a broad look at market conditions as well as specific sectors, check out this article on Bullish Percent Indicators for last week.  I try to post the BPI information each week either on Seeking Alpha or here at ITA Wealth Management.   … [Read More...]

Asset Allocation or Risk Parity

A Platinum member sent the following summary of an article and asked me to comment.  Note that my response is framed in the context of constructing portfolios through the use of a strategic asset allocation plan.  The Dashboard of the Curie Portfolio, posted this morning, is an example.  The second part is tied to future performance forecasts using software, Quantext Portfolio Planner (QPP).  Here … [Read More...]