100 Level

Working With The Basic Portfolio

Eventually I plan to move more of the ITA portfolios toward the following 20 ETFs.  In some portfolios I need to broaden the diversification and in others I need to reduce the number of securities in an effort to simplify.  Reducing cost is another motivation as all but two of the following ETFs can be purchased free if one is a TD Ameritrade client.  The two exceptions are GTU and VHT.  In this … [Read More...]

Motley Fools, Passive & Active Investing

Photograph:  Mt. Bachelor in Central Oregon If you need more evidence to support passive rather than active investing, here is another article on what is happening over on the Motley Fools web site.  In the 1990s, I was a regular reader of material on the Fools site. At the time is was the most popular investment web site to visit.  I devoured their popular book, "The Motley … [Read More...]

300 Level

ITA Ratio Introduced

As I wrote in an earlier comment, I am moving from the Sortino ratio over to what I call the ITA ratio.  Let me go into detail as to why I am making the change.  I will explain how the new ITA ratio is calculated and how it will be programmed into later versions of the TLH spreadsheets.  It is not going to be all that difficult to make the change so stick with me. Before I launch … [Read More...]

Variation of “New Normal” Portfolio

We are always searching for a better portfolio asset allocation based on five criteria.  Projected return Projected uncertainty or volatility Ratio of Return/Uncertainty Diversification Metric Portfolio Autocorrelation Platinum membership is available for $5.00 per month. View "New Normal" portfolio. … [Read More...]

200 Level

Ultra Capital Preservation Portfolio Revised

Last week I laid out the Ultra Capital Preservation Portfolio. That portfolio contained an error and in this blog post I make the correction.  Instead of using IWN, I meant to use IWM.  IWN is a value oriented ETF, and I intended to use the broader ETF, IWM.  Here is the QPP analysis on the portfolio I intended for the Ultra Capital Preservation. … [Read More...]

Portfolio Performance: 20 May 2011

While nearly every updated portfolio lost a little ground in absolute terms, all gained when compared to either the customized ITA Index, the Vanguard Total Market Index Fund (VTSMX), or one of the two uncertainty or risk ratios.  Absolute terms means that the Internal Rate of Return (IRR) of the portfolio declined.  While this is important, the relative measurements are more significant … [Read More...]

400 Level

Stress Testing the Kepler Portfolio

Next week the Kepler Portfolio is up for review.  In advance of that update I am running what I call a "stress test" assuming this to be your retirement portfolio.  Given a set of assumptions laid out in the first slide, would this portfolio last through retirement? Here we have a 40 year-old who plans to retire in 2040 at age 68.  Having already saved $200,000 and planning to put away another … [Read More...]

Monitoring VTI StockCharts

Keep an eye on the StockCharts graphs for VTI, VEU, VWO, VNQ, and RWX. This link will take readers to the VTI graph.  … [Read More...]