100 Level

Mebane Faber’s New e-Book – Shareholder Yield

Those reader's who have read Faber & Richardson's book "The Ivy Portfolio" might be interested in downloading Faber's new book - "Shareholder Yield".  It's a bit of a marketing tool for his new ETF but the price is right - it's free for the next 5 days - and there's some interesting information in … [Read More...]

Portfolio Construction: Asset Allocation Percentages Are Vital To Success

 Photograph: Fisherman in Greek Islands   This Blog is dedicated to helping the beginning investor build and monitor a portfolio.  Here are a few of the basic guidelines. Skew the portfolio toward small-cap ETFs and play down large-cap ETFs.  Evidence for this shows up in the Portfolio Performance data tables. Emphasize value over growth as value outperforms growth … [Read More...]

300 Level

Smartest Medium-High Risk Portfolio

With this analysis of the medium-high risk portfolio, we leap over the medium risk portfolio found at this site. The medium-high risk portfolio limits the bond/income asset class to 20%.  Remember, we began with 80% allocated to the bond asset class, moved to 60%, then 40% and now 20% or something similar to what we hold in many portfolios tracked here at ITA Wealth Management. Note the … [Read More...]

Sample Portfolio Optimized

The following screenshots show the optimization analysis of the submitted sample portfolio.  First I show the Efficient Frontier graph, followed by the ranking order of the holdings, and finally the Buy-Hold-Sell data sheet. Efficient Frontier:  Since I did not have the exact number of shares for each holding, I estimated the approximate percentage.  The current portfolio lies very close to the … [Read More...]

200 Level

Can Your Portfolio Survive The Next Bear Market?

The following SORDEX analysis is a variation of the material presented in the "Will I Run Out of Money?" blog.  Once more, I will use the 12-ETF Portfolio as the retirement portfolio.  As review, SORDEX is an acronym for Sequence-of-Returns Downside Exposure. Translated for T. C. PITS, it is a way to run several Monte Carlo calculations and see if you are likely to run out of … [Read More...]

Portfolio Performance: 21 January 2012

This was a good week for most of the portfolios.  Not only did we see absolute gains, but relative improvement as well.  The majority of the portfolios gained a little ground on either the ITA Index, the VTSMX benchmark, or one of the three uncertainty measurements. The exaggerated figures related to Gauss are to be expected as this is a young portfolio.  Annualized calculations … [Read More...]

400 Level

ITARR Working As Planned

When the ITA Risk Reduction model was instituted several months ago, the logic behind the plan was to take a few portfolios that were lagging their benchmarks and see if there was a way to turn that situation around.  So long as the market was moving up and the prices of the various ETFs never dipped below their 195-Day EMAs, I did not expect to see much change in the Internal Rate of Return … [Read More...]

Bonds: Are Any Worth Buying Based on “Delta Factor” Projections?

Bond Projections Look Dim Periodically a "Delta Factor" projection is posted for equities and bonds.  Today I am updating the projections for a wide array of bond ETFs and the outlook is not strong as one can see from the table below. … [Read More...]