100 Level

Gauss Portfolio Review: Risk Reduction Model Update

At the end of each month the Gauss Portfolio comes up for its ITARR review.  Over the past few days I had some concerns that one or more of the eight critical ETFs would be sold out of the Gauss.  Fortunately, this did not happen as the closing prices today showed each of the ETFs priced above their 195-Day Exponential Moving Averages.  We may find a different situation when the Maxwell is … [Read More...]

New Hosting Site

If you are reading this message you have arrived at the new hosting site for ITA Wealth Management. This site should load faster than the old site.  If this is not the case, let me know. To make sure you pick up all the blog entries, be sure to read material from December 17th through December 22nd on the old site at http://lherr.org/ita/   From today on, the latest material will … [Read More...]

300 Level

Optimization-Momentum and QPP Analysis of Schrodinger: Part 1

Even though it is not time to update the Schrodinger, I am using it this Memorial Day (was called Decoration Day when I was a kid) to illustrate the OM Model.  Let me state immediately that I don't have a clue what the QPP analysis will project when the assets are optimized.  Wait and see what comes out of this analysis. I'll first start with the optimization-momentum model where I am using the … [Read More...]

Newton Portfolio Update: 15 May 2012

How well is the Newton Portfolio performing?  Below are screen shots of the Dashboard and Portfolio Performance data.  Even though the Newton is not part of the ITA Risk Reduction experiment, I did lighten up on both international and emerging markets.  The follow table reflects asset classes where I sold some holdings in VEU, VWO, and DBC.  So far those moves helped the … [Read More...]

200 Level

Asset Allocation for Small Global Portfolios

If your portfolio is small and yet you want global diversification, this portfolio is one to consider.  This six asset class portfolio is built around asset allocation guidelines laid out by David Swensen in his book, "Unconventional Success."  Thirty percent of the portfolio is allocated to U.S. Treasury Bonds (TLT) and TIPs (TIP).  Domestic REITs are covered with the VNQ … [Read More...]

Risk-Parity Portfolio: What Is It And What Does A Risk Portfolio Look Like?

Reducing Risk Through Risk-Parity Risk-Parity: Have you heard of the term or seen reference to this style of portfolio construction?  Join the crowd if this is new to you, even though the Risk-Parity idea has been around for quite a few years.  Risk-Parity is an alternative approach to portfolio construction where assets are allocated based on risk rather than allocation according to … [Read More...]

400 Level

Harry Browne’s Permanent Portfolio

Risk-Parity Look at Permanent Portfolio Much is written about Harry Browne's Permanent Portfolio, particularly since it held up well during the "Black Swan" markets of the early 21st century.  Below is a look at the equal allocation plan as advocated by Browne, and a Risk-Parity examination of the same four asset classes.  Both the equal allocation and Risk-Parity … [Read More...]

Watching Prices and 195-Day EMAs

I've been tracking or at least observing the prices of the eight critical ETFs and their respective 195-Day Exponential Moving Averages (EMAs) and was relieved to see the upticks today. The Madison is up for review this weekend and based on the closing numbers, I can place this portfolio on automatic pilot for another month.  That leaves the Gauss to be evaluated at the end of the … [Read More...]