100 Level

Are Optimizers Anything But Error Maximizers?

Mean-Variance Optimization "Mean-variance optimization presents an illusion of precision that is seductive but generally fallacious and even dangerous."  So writes Richard O. Michaud in his book, Efficient Asset Management: A Practical Guide to Stock Portfolio Optimization and Asset Allocation.  Harold R. Evensky provides this MVO warning.  "In spite of my strong defense of Markowitz's … [Read More...]

Rule #8 of Investing

Put off paying taxes until a later date is Rule #8. Permit your savings to grow tax deferred through your working life. If your employer will match savings in a 401 (k) or 403 (b) plan, do not leave any dollars on the table. For every dollar placed in a savings account, match that amount with every dollar you can muster. It is amazing how many workers do not take advantage of retirement plans set … [Read More...]

300 Level

Kenilworth Portfolio Review: 23 November 2012

Early this month I purchased a few shares of VOT to bring mid-cap growth back into balance.  Another change in the Kenilworth occurred back on 10/24/12 when I sold shares of DBC as the price of this commodity ETF was below its 195-Day EMA.  That is the reason the commodity asset class is below target.  Remember, the Kenilworth is one of the ITA Risk Reduction model portfolios.  I will need to see … [Read More...]

Bohr Portfolio Review: 27 July 2011

Few changes occurred in the Bohr Portfolio since the last review.  The asset allocation remains the same, and as readers can see in the first screen shot, most of the asset classes are in balance.  Excluding cash, only Small-Cap Growth and Bonds/Income are out of balance.  Limit orders are in place to correct these imbalances, but as I wrote last weekend, I lowered the … [Read More...]

200 Level

Repositioning Madison Portfolio

ITA Wealth Management readers checking the latest Portfolio Performance* data table will observe that the Madison Portfolio is lagging the VTSMX benchmark.  In an effort to push this portfolio performance to a higher level, I am going to employ the ITA Risk Reduction (ITARR) model, or the same one being used for the Maxwell and Euclid portfolios.  This will require selling some current … [Read More...]

Captool Performance Data Table

February broker statements are available and I've been working since early morning updating the portfolios tracked using Captool software.  This past month was a good one for most investors as the portfolios, in general, gained ground on the benchmarks.  I'll know more details after updating the TLH spreadsheets.  The performance data table, shown below, is available to … [Read More...]

400 Level

QPP Analysis of iShare ETFs Over Different Periods

Over the last few days I've posted a number of entries related to the "Delta Factor" (DF) analysis.  This flurry of DF articles came about as a result of questions tied to entry into the market.  If one is holding cash, when is a good time to begin investing that cash into equity and bond vehicles, be it individual stocks, index mutual funds, or index ETFs?  Readers … [Read More...]

Bullish Percent Indicators For Sectors Is Positive

Just as the Bullish Percent Indicators are positive for the six indexes, the same is true for the ten sectors.  All showed gains over the past week and two switched from defense to offense.  Check the right side of the table shown below. … [Read More...]