100 Level

Developing a Strategic Asset Allocation Plan

The “Golden Rule of Investing” is to save as much as you can as early as you can.  That simple guideline is fundamental to any investment plan and it is critical to know why the word early is so important.  What comes second (portfolio planning) is also important, but it cannot be implemented unless one has saved money for investing. In this post, we assume the reader has a … [Read More...]

Where To Begin If You Have Never Managed A Portfolio

If someone asked you what to do with an inheritance or 401(k) sum of money, what advice would you give them?  Here are some basic ideas for a novice investor. Assume the money is in your checking account and available to be invested. Open up a broker account with a discount broker.  For example, go to a "bricks and mortar" location if possible and fill out the forms.  A good idea is to print … [Read More...]

300 Level

Curie Portfolio Update: 1 June 2012

Photograph:  Sunrise in Hilo, Hawaii June is upon us and it is time to update the Curie Portfolio.  Although the Curie is not one of the ITA Risk Reduction model portfolios, I am applying ITARR methods to some of the asset classes as Platinum members can see in the following Dashboard.  Large-Cap Blend is one of the asset classes I am closely tracking.  When the market closed … [Read More...]

Newton Portfolio Review: 20 March 2012

It is again time to check in on the Newton Portfolio.  The following Dashboard shows the Strategic Asset Allocation plan for the Newton, and nearly all the asset classes are in balance.  I am not concerned about the under-target in international bonds as it is counter balanced by overweight in domestic bonds. Portfolio Performance:  Readers who have been following the Newton can … [Read More...]

200 Level

Schrodinger Portfolio Update: 3 January 2012

With all dividends recorded, the following Schrodinger Dashboard shows this portfolio is in very good condition.  At least nearly all asset classes are within the target ranges.  I am down about 170 shares of RWX in international REITs, but we have plenty of time to rebuild that asset class as the price of RWX is well below its 195-Day Exponential Moving Average (EMA). … [Read More...]

Portfolio Performance: 7 January 2012

Of the ten portfolio evaluated a week ago, all showed absolute gains this week.  A new portfolio, Gauss, was add to the list.  Expect the Internal Rate of Return (IRR) values for this new portfolio to be exaggerated for a number of months as that is the nature of the IRR.  Slight performance changes are amplified as these are annualized percentages calculated over only a few … [Read More...]

400 Level

Quantitative Approach to Portfolio Management

In the experiment to improve the performance of the Maxwell and Euclid portfolios we need a basic set of ETFs to form the core for our investments.  This quantitative approach is an outlier in our portfolio management philosophy as it has the potential for more trading.  For this reason, I will be using ETFs that are part of TDAmeritrade's 100+ commission free trades.  Below is … [Read More...]

Sortino Ratio: Revised Calculation

Platinum members likely picked up my reference on the new Sortino Ratio (SR) calculation in the comments section.  When you first log on to ITA Wealth Management, be sure to check for the latest comments or better still, sign up for a comments RSS.  What is changing with the SR calculation? … [Read More...]