100 Level

Dow 30 And The “Delta Factor”

Normally, I reserve the "Delta Factor" analysis for non-managed index ETFs.  Deviating from that pattern, below is a table for the Dow Jones Industrial 30 stocks.  ITA followers, who are also Mosaic investors, will find this list of interest.  Are there any mega-cap stocks that show promise of price growth over the next six to twelve months? When examining a table such as … [Read More...]

A Portfolio Construction Policy

Photograph: Main Gate to University of Glasgow, Scotland As an educational investment blog, ITA Wealth Management is all about portfolio construction, management, and monitoring.  In this post I will focus on the beginning steps of portfolio construction.  Portfolio construction is the process of assembling security holdings using a Strategic Asset Allocation blueprint.  We will … [Read More...]

300 Level

Kepler Portfolio Review: 15 February 2013

Normally, portfolio reviews are spread out over the month, but I got behind while on vacation so that is the reason for the second update today.  As with the Curie, I will show the current Dashboard or asset allocation plan.  Then I will present the optimization plan including all the constraints.  First the current condition of the Kepler. … [Read More...]

Risk-Parity Portfolio: What Is It And What Does A Risk Portfolio Look Like?

Reducing Risk Through Risk-Parity Risk-Parity: Have you heard of the term or seen reference to this style of portfolio construction?  Join the crowd if this is new to you, even though the Risk-Parity idea has been around for quite a few years.  Risk-Parity is an alternative approach to portfolio construction where assets are allocated based on risk rather than allocation according to … [Read More...]

200 Level

Simplified “Holy Grail” Portfolio: A 12-ETF Approach

12-ETF Portfolio Following up on yesterday's blog post, here is a simplified revision of the "Holy Grail" portfolio.  Any time one can reduce the number of holdings and improve the return and volatility projections, give the new portfolio high marks.  The following group of twelve (12) ETFs provides a higher Return/Risk ratio than the portfolio discussed yesterday.  … [Read More...]

The Permanent Portfolio Approach

The following comment generated this response.  The question is quoted so readers will follow the context of my post.  This is likely to be a long post so prepare yourself for some detailed information. "I would appreciate your comments on the following: I’ve been thinking about the Permanent Portfolio approach, and the Feynman studies; and possibly how to meld them together. First, about the … [Read More...]

400 Level

Is It Time To Hedge This Market?

Hedging or shorting the market is a high risk game and I'm not about to tell anyone what to do.  Shorting is the ultimate in market timing, and most of us know the pitfalls associated with such activities.  Having waved those red warning flags, let's take a look at the data.  As I mentioned in a recent comment, investors are in a quandary when it comes to holding down portfolio volatility.  To … [Read More...]

ITA Risk Reduction Model Positions

Investors following the ITA Risk Reduction model are currently in "neglect" mode.  This simply means we are not trading any commission free ETFs, but we are watching the price action of several key markets.  Let's focus on two REITs to illustrate this point.  In our portfolios we include both domestic (VNQ) and international (RWX) REITs.  In the following graph we … [Read More...]