100 Level

Pillars of Investing: William Bernstein Advice

  Photograph: The original Fitzcarraldo boat. William Bernstein's outstanding investment book, "The Four Pillars of Investing" defines four pillars of investing and these broad areas include the following. 1.  The Theory of Investing. 2.  The History of Investing. 3.  The Psychology of Investing. 4.  The Business of Investing. If I were asked to … [Read More...]

Basic Five Asset Class Portfolio

What are the basic asset classes that belong in every portfolio?  Investors beginning the portfolio construction process would do well to include each of the following five asset classes in their portfolio.  The ETF ticker suggestions are among those I use to populate these five asset classes.  This group of ETFs provide broad coverage of the world market, although there are still a … [Read More...]

300 Level

Reference Portfolio Analyzed

Using an array of ETFs, primarily commission free with TDAmeritrade, I ran a Momentum-Optimization Model (MOM) analysis for the purpose of showing new and experienced investors how the MOM can be used¬† to manage a portfolio.¬† Not everyone will be interested in this model as it does require more monitoring than the buy and hold approach. Consider MOM to be one level up in sophistication as … [Read More...]

Portfolio Management and ITA Index

Yesterday I mentioned in a comment and posted in the center footer that the distributions for the VTSMX and VFINX index funds are available.  If you are using the TLH Spreadsheet and received a warning signal behind the two radio buttons on the primary (frequently called Mosaic) worksheet, you need to update the distribution page.  I don't think I have a Camtasia audio/video clip of … [Read More...]

200 Level

Einstein Portfolio Review: 19 September 2011

Several portfolios are scheduled for review this week and the Einstein is first on the list.  Platinum members who follow ITA regularly know that I review the portfolios approximately every four to five weeks.  The first thing I do is look at the Dashboard, a worksheet housed within the all important TLH Spreadsheet.  The Dashboard lays out the asset classes and the percentage … [Read More...]

Portfolio #1: Ages 15 – 25

Portfolio #1 emphasizes simplicity.  This is a starter portfolio for young investors who have little to save, but want to begin putting together a core portfolio to build on in later years.  It is extremely simple in that it holds only four asset classes. While the projected return is relatively high based on our S&P 500 projection of 7%, the 9.2% return comes with a high projected … [Read More...]

400 Level

August “Delta Factor” Risk-Adjusted Portfolio For Interested Investors

What is a "Delta Factor" risk-adjusted portfolio and how is it constructed?  Rather than considering this as a potential portfolio for actual use, view it as an experimental portfolio.  Here are the steps I used to come up with this combination of ETFs. … [Read More...]

What Is A Good Sortino Ratio?

Seeking a Good Sortino Ratio A reader of ITA Wealth Management was seeking an answer to the question, what is a good Sortino Ratio?  The simple and quick answer is - anything above zero.  Check this definition of the SR.  While the equation is quite simple, the difficulty comes in calculating the denominator. SR = (P - T)/DR where P is the portfolio return T is a portfolio … [Read More...]