100 Level

Fiscal Cliff: Time to Activate ITARR Model

We hear a lot about the coming "fiscal cliff."  If Congress does not act before taxes increase and spending cuts go into effect at the beginning of 2013, the country could go into another recession.  Rather than panic, now is the time to pay close attention to each major holding in your portfolio(s).  Instead of limiting the ITA Risk Reduction model to five portfolios, I plan to expand the number, … [Read More...]

Portfolio Uncertainty: Pay Close Attention

"If the physical world is so uncertain, so difficult to know precisely, then how much more uncertain and unknowable must be the world of money?  Finance is a black box covered by a veil." - Benoit Mandelbrot It almost goes with out saying - investors pay more attention to return than they do to risk or portfolio volatility.  At least this is the case until a bear market strikes as it did in … [Read More...]

300 Level

Einstein Portfolio Review

Last week I added a few shares of RWX, VWO, and EMB to the Einstein to bring a few asset classes into balance.  Other than the Bonds & Income asset class, this portfolio is now in balance. One Tactical Asset Allocation I will be making is to shift one percentage point from Small-Cap Growth over to Small-Cap Value.  i will use IWN for my Small-Cap Value ETF.  Another change is … [Read More...]

Kenilworth Update

Kenilworth Review A few shares of VTV were added to the Kenilworth Portfolio this morning in order to begin the process of pulling that asset class into balance.  Very little cash is available and that is why we are buying shares in such low quantities.  Fortunately, we no longer need to worry about commissions if we select ETFs that are among the select group from TDAmeritrade. As … [Read More...]

200 Level

Ultra Capital Preservation

On occasion, readers ask for advice on asset allocation plans.  Most of the portfolios tracked on this blog are classified as balanced, growth, or even aggressive growth.  Holders of the "science" portfolios are younger, have very long-term goals, or have other means of income so very conservative portfolios are not appropriate.  As a result, no portfolios are what I would … [Read More...]

Asset Classes: How Many Should You Own?

With much recent attention given to answering the money managers most perplexing question, what percent of the portfolio should be invested in each asset class, the whole idea of how many asset classes to include in a portfolio has been neglected.  William Bernstein answers the question this way.  "You might as well ask the meaning of life.  About all one can say is, more than three."  The major … [Read More...]

400 Level

“Delta Factor” Update: October 27, 2011

Equity ETF Performance Projections Based on popular demand, here is another "Delta Factor" update of the equity ETFs we use to populate our portfolios.  New readers to ITA Wealth Management would do well to search the blog for other "Delta Factor" posts.  A quick explanation is that the "Delta Factor" and "Conservative Delta Index" columns are … [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...]