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...]

Introducing New Sector Security

I'm introducing a new sector security to a number of portfolios even though I have yet to purchase any shares.  I want this "arrow in my investing quiver" just in case I decide to add shares to the portfolio.  I came upon this unique ticker while reading a financial journal.  Here is the ticker symbol and what it is designed to do. This material is not available for publication elsewhere on the … [Read More...]

300 Level

Kepler Portfolio Update: 13 August 2012

A few weeks ago I explained the changes that were coming in the Kepler Portfolio.  The following "bloody" Dashboard shows the changes that were put into place.  All the growth asset classes were lowered from 3% to 2%, putting all above target.  The allocation to U.S. Equities was lowered to 30% and those assets helped to increase exposure to domestic real estate.  The … [Read More...]

Benchmarking The Portfolio

When putting together a portfolio, it is important to be able to measure the performance as well as carry out an accurate risk assessment. In order to do this, it is necessary to have some idea of how you expect the individual securities to perform. Therefore, the way to achieve this is to create a customized benchmark for your portfolio, a method commonly used by successful fund managers. … [Read More...]

200 Level

Swensen Six With & Without Stocks

Benefits to Super Charging Portfolio With Stocks Two portfolios are displayed below.  In the first we have a portfolio made up of only six ETFs.  I call this the Swensen Six. To point out some critical features, note the projected average annual return of 7.89% or 7.9% rounded.  This is based in the assumption the S&P 500 will return an average annual return of 7.0%. The … [Read More...]

Starting From Scratch: The Logic Behind the “Swensen Six” Portfolio

When it comes to building a portfolio, David Swensen's general guidelines provide numerous strong starting points.  His portfolio satisfies requirements of numerical diversification, equity orientation, and functional diversification.  While Swensen does not recommend specific tickers in his book, Unconventional Success, he lays out basic guidelines I consider vital to portfolio … [Read More...]

400 Level

ITA Risk Reduction Update

Photograph: One of the "Painted Ladies" in Eureka, California The broad market is taking a 3.5% hit today, not a trivial move to the downside.  Those of you following the ITA Risk Reduction (ITARR) model now have the opportunity to see the benefits in action.  While we are not fully employed with this model, holding off with VEU and VWO purchases worked quite well as both ETFs … [Read More...]

Bullish Percent Indicators: 2 August 2013

All the major indexes powered forward this past week, but we now have three sectors that are controlled by defensive teams.  Technology and Telecommunications broke a three-week trend and joined Utilities which continues to show O's in the right-hand column despite its very high absolute value.  Here are the numbers. Index BPIs:  The following table displays the overall direction of seven major … [Read More...]