100 Level

Madison Portfolio Review

Since the last Madison update 33 days ago, shares of TLT, RWX, and DBC were sold and the available cash was used to pick up shares of VTI - all in keeping with the Momentum-Optimization Model (MOM).  Of the eleven portfolios tracked here at ITA, the Madison is one of three where all the transactions are not available to Platinum members. Madison Dashboard:  The 26% allocated to international … [Read More...]

Delta Factor After 400 Point Drop

ITA Wealth Management readers likely want to know what the Delta and Delta Factor projections are indicating after the 400 point drop yesterday.  The buying trend has started, although we still could be early in the cycle.  The reason I think we may be early is that it is not unusual for the Delta Factor to make projections a few months early.  Two time ranges are shown in the … [Read More...]

300 Level

A Three- and Five-Year QPP Analysis Of The New Normal Portfolio

"New normal" is a term coined by the brain trust at the giant bond fund PIMCO.  Bill Gross is frequently given credit for coming up with this term as a way to underscore a change in the expected growth of our economy and investment markets.  "New Normal" is another way of stating that growth is slowing so prepare for it.  One way we prepare is to reset the … [Read More...]

Portfolio Diversification

This morning a link to the following Seeking Alpha article showed up in my e-mail box.  ITA Wealth Management readers know the importance of diversification and our mature portfolios include the five asset classes mentioned, and many portfolios include all six.  While the article advocates diversification, readers need to be aware that the graph is showing data that was … [Read More...]

200 Level

Lost My Spouse – Part III

Determine your long-term cash flow. How much monthly income is required?  Will income from pension and social security meet the cash flow requirements or is additional money required from the portfolio?  For most single retired individuals, some income is required from the portfolio.  My recommendation is to pull no more than 4% annually from the portfolio.  The lower the … [Read More...]

Update of Schrodinger Portfolio: 20 January 2012

The Schrodinger Portfolio was scheduled for an update yesterday, but I got caught up in activities surrounding the Madison Portfolio, one of the ITA Risk Reduction portfolios.  Long-time readers know the Schrodinger as the most passively operated portfolio I track.  It is rare we make a trade in this eleven-year portfolio.  Platinum readers can see the asset allocation plan in the … [Read More...]

400 Level

A Risk-Parity Look At The New Normal Portfolio

While I don't know if the current makeup of assets matches my most recent copy of the New Normal, a look at a risk reduction or equal rating of risk is instructive.  Check out the QPP analysis below. … [Read More...]

Current Condition of the ITA Risk Reduction Model

In contrast to a passive or index approach to investing, what is the state of the critical ETFs used in the portfolios where we are employing the ITA Risk Reduction (ITARR) model?  Tactical Asset Allocation is applied to ETFs in the Maxwell, Euclid, Madison, Kenilworth, and Gauss portfolios so as to avoid "Black Swan" events as we experienced in 2002 and again in 2008.  While … [Read More...]