100 Level

Standard & Poor’s Indices vs. Active Funds

Readers who need to be convinced that actively managed mutual funds is not a good idea only need to take time to read and study this paper.  This is a follow up to my last post.   … [Read More...]

Harry Markowitz

  Modern Portfolio Theory This morning I came across an interesting article on Harry Markowitz, the father of Modern Portfolio Theory (MPT).  Early in "The Big Bang" article are the fundamental principles of MPT. Quoting from the article, here are the three basic investment techniques or ideas that come out of MPT. "Those techniques are based on three foundational … [Read More...]

300 Level

Bohr Portfolio Review: 10 May 2012

While it is still approximately 10 days before the scheduled review for the Bohr Portfolio, I am moving the update forward due to weakness in the international markets.  Platinum members will note two asset classes below target.  Not long ago I sold shares in VEU and VWO, developed and emerging markets respectively.  Fortunately, that was a good move as prices declined. … [Read More...]

Creating The Customized ITA Index Benchmark For The Kenilworth And Other Portfolios

Constructing a customized benchmark to use as a performance standard is nearly as important as putting together a Strategic Asset Allocation (SAA) plan for a portfolio.  If one does not benchmark a portfolio how is it possible to know how well the portfolio is being managed?  To understand what is required to come up with a good benchmark, check this reference.  I also recommend … [Read More...]

200 Level

Maxwell Portfolio Review: 9 July 2012

The Maxwell Portfolio Review time is here again.  Developed international markets (VEU), emerging markets (VWO), and commodities (DBC) are still priced below their 195-Day Exponential Moving Averages so those asset classes will remain under target.  I made an error of purchasing shares of small-cap blend (VB) when I meant to buy shares of mid-cap blend (VO).  That is the reason … [Read More...]

The Permanent Portfolio Approach

The following comment generated this response.  The question is quoted so readers will follow the context of my post.  This is likely to be a long post so prepare yourself for some detailed information. "I would appreciate your comments on the following: I’ve been thinking about the Permanent Portfolio approach, and the Feynman studies; and possibly how to meld them together. First, about the … [Read More...]

400 Level

Is It Time To Hedge This Market?

Hedging or shorting the market is a high risk game and I'm not about to tell anyone what to do.  Shorting is the ultimate in market timing, and most of us know the pitfalls associated with such activities.  Having waved those red warning flags, let's take a look at the data.  As I mentioned in a recent comment, investors are in a quandary when it comes to holding down portfolio volatility.  To … [Read More...]

Bullish Percent Indicators: Four Switch Positions

Bullish Percent Indicator (BPI) information is a relatively new addition here at ITA Wealth Management.  It is another investment arrow we are including in our investment quiver.  A major change I made this week is to move from an arithmetic measurement of the box size to a log or percentage scale for calculating the box size.  Just as it makes sense to calculate portfolio increases … [Read More...]