100 Level

Lost My Spouse – Part IV

  Conservative Portfolio for Living Spouse   The probability of losing a spouse is much greater after retiring than before retirement.  It is simply a matter of age.  Further, assume the person still living is less informed about investing than the deceased person.  Advanced age and not too savvy about investments is a combination that calls for a very conservative … [Read More...]

Multi-Asset Class Investing

Multi-asset class investing or multiple asset classes is a title that comes right out of Richard A. Ferri’s excellent book, “All About Asset Allocation.” While my reference is to Ferri's first edition, I would pay the few extra dollars and purchase the second edition.  Nudged by a fellow asset allocation investor, I went back and reread Chapter 4 of Ferri’s book. … [Read More...]

300 Level

Portfolio Performance Data – 29 April 2011

While this was a good week for all portfolios in absolute terms, relatively speaking, nearly every portfolio lost ground to one or more of the benchmarks.  Advances from last week were essentially wiped out this week.  When the market is in a strong bull phase as is now the case, it is difficult for a broadly diversified portfolio to keep up with U.S. equities and that is what we saw … [Read More...]

ITA Index: Recalibration

Photograph: Cologne Cathedral - Photo by Ken Appel   Recalculation of ITA Index As I mentioned in a comment yesterday, I've come to the conclusion that the ITA Index needs a calculation overhaul.  Instead of using each and every asset class from the "Big Nine" U. S. equity classes, I am lumping all of these asset classes into one benchmark and that is the reliable VTSMX index fund.  In … [Read More...]

200 Level

Portfolio Performance: 24 December 2010

Portfolio Performance Data Table With the market closed today, this portfolio table is coming out earlier than normal.  The following data shows the updated information for the seven portfolios tracked by Platinum readers, plus the Madison, Euclid, and Maxwell portfolios. A few of the portfolios gained ground on both the ITA Index and VTSMX benchmarks. Overall, the changes were … [Read More...]

Asset Allocation: Working With Optimizer

How does one combine the power of the Dashboard and the Hoadley optimizer when it comes to setting up an asset allocation plan for a portfolio.  ITA readers are familiar with the Dashboard as it is shown every time a portfolio is updated.  In this post I will explain how one might combine the Dashboard and Hoadley optimizer.  Since the Hoadley optimizer is confined to nine (9) asset classes, I've … [Read More...]

400 Level

QPP Projections for “Swensen Six” On March 15 of 2009

What was the Quantext Portfolio Planner (QPP) software projecting for the "Swensen Six" Portfolio back on March 15th of 2009?  I use the Swensen as an example portfolio since it is simple and it includes most of the basic asset classes we use with ITA portfolios.  In addition, March 15th was about the market bottom, so it is of interest to see what the projections were when we were all biting our … [Read More...]

Bonds: Are Any Worth Buying Based on “Delta Factor” Projections?

Bond Projections Look Dim Periodically a "Delta Factor" projection is posted for equities and bonds.  Today I am updating the projections for a wide array of bond ETFs and the outlook is not strong as one can see from the table below. … [Read More...]