100 Level

Mebane Faber’s New e-Book – Shareholder Yield

Those reader's who have read Faber & Richardson's book "The Ivy Portfolio" might be interested in downloading Faber's new book - "Shareholder Yield".  It's a bit of a marketing tool for his new ETF but the price is right - it's free for the next 5 days - and there's some interesting information in … [Read More...]

New User of ITA Wealth Management? Suggestions for Efficient Usage.

Using This Blog* Getting started in a blog as complex as ITA Wealth Management takes time for a new user, particularly a Platinum member.  Here are a few hints that will benefit all users. When you first log on, check the Comments section to see if any new additions were posted since you last connected. If you are signed up for the RSS for Comments, then you will be notified via e-mail … [Read More...]

300 Level

TLH Spreadsheet: Why It Is Useful For Serious Investors

Platinum members new to ITA Wealth Management should not overlook the power of the TLH Spreadsheet.  Successful investing is all about portfolio planning, construction, and monitoring.  The TLH Spreadsheet is an aid in all three categories.  Here are several benefits investors derive when using this portfolio tracking spreadsheet. 1. Construction and ease of tracking Strategic Asset Allocation … [Read More...]

Asset Allocation: Medium-High Risk Portfolio

This is the fourth portfolio in this series of relative risk allocation plans based on the data table found in this blog entry.  Note how the projected return is rising, but so is the projected uncertainty.  Return and Risk are highly correlated.  It is difficult to find a combinations of tickers that will increase the projected return while driving down the projected standard … [Read More...]

200 Level

Will I Run Out of Money Using the Ivy 5?

Ivy 5 Portfolio and Retirement Following up on the quantitative approach to managing portfolio uncertainty, I'll update the Ivy 5 portfolio as referenced in Mebane T. Faber and Eric W. Richardson's book, "The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets." [Open up blog entry for book link to work properly.]  On page 75 of their book, Faber and … [Read More...]

Retirement Requirements: Stress Testing the Gauss Portfolio

Assume you are using the Gauss Portfolio asset allocation plan for your retirement portfolio and you want to know if you can survive a three sigma event just prior to retirement.  The provided link or the Dashboard shown below lays out the Strategic Asset Allocation plan for the Gauss.  What is required in the way of savings for a 40-year old who has only saved $100,000 thus far and expects to … [Read More...]

400 Level

15-Stock Diversification Myth

Diversification Myth Debunked   How many stocks does it take to eliminate portfolio risk?  The number 12 to 15 often crops up.  If that is too few, then maybe 20 to 30 will do.  This number has also come under fire, particularly in a world economy where U.S. companies no longer make up the majority of available companies and our economy is shrinking as a percentage of the … [Read More...]

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...]