100 Level

The Diversification Decision

The Diversification Decision Now we come to the most difficult decision of the five laid out in the Goldie – Murray book, "The Investment Answer." If you have the book in hand, you will realize I partially answered this question when I wrote about The Asset Allocation Decision. Here is the expanded explanation of the diversification decision articulated by G & M. "Which … [Read More...]

Dollar Cost Average, Value Average, or Jump In Now

"Once desired allocation is determined, what is best way to execute the plan:  Dollar Cost Average (DCA)  or Value Average (VA) over a period of time or all at once?"  This was question 17 on the list from this blog entry.  I don't have an easy answer to this question.  Maybe I should if this site provides any clues.  Considering that Rukeyser's … [Read More...]

300 Level

Portfolio Performance: 1 April 2011

Below is the Performance - Uncertainty data table for April 1, 2011.  In the process of updating the table, I focus on the changes in Sortino Ratio (SR) and Retirement Ratio (RR) as those values combine both return and uncertainty for each portfolio.  Since the last update, four (4) portfolios showed gains in the Return/Uncertainty ratio while three (3) showed losses and three (3) came … [Read More...]

Einstein Portfolio Update: 27 October 2011

Several moves took place over the last few weeks in an effort to bring more asset classes into balance within the Einstein Portfolio.  Shares of VO and VB were sold in order to bring mid-cap and small-cap blend within the 20% threshold limits.  Shares of the International bonds (BWX) were added and we made a few small purchases in IEF and BND to bolster the bonds asset class.  Bonds … [Read More...]

200 Level

Portfolio Performance Update

With the significant drop on Thursday of this week, I wanted to see how the various portfolios survived the 3/10 downdraft.  Below is the performance data table, and for the most part, the various portfolios held up quite well.  The IRR values for the portfolios updated through 3/10/11 are conservative for several reasons.  The March dividends are missing from many of the … [Read More...]

Portfolio Performance: 15 July 2011

Photograph: Mercedes All portfolios tracked using the TLH Spreadsheet lost ground this week.  Those are the absolute results.  On a relative basis, the vast majority gained ground on either or both the ITA Index and VTSMX benchmarks.  Most portfolios also picked up strength with both the Sortino and Retirement ratios.  Inflation dipped 0.01%, a modest positive signal. Asset … [Read More...]

400 Level

Rule #6 of Investing

Diversify is Rule #6. Diversity reduces adversity. Simply put, spread your money out over several asset classes. For small accounts, one should at the very least consider stocks (ETF equity), bonds, and an international fund. For larger accounts, broaden into REITs, commodities, and emerging markets using ETFs or index funds. For the very largest of portfolios, break the asset classes into value, … [Read More...]

Portfolio Performance

Photograph:  Dome of Blue Mosque in Istanbul, Turkey If you hear someone come across a bit strong when it comes to portfolio performance, ask a few simple straight-forward questions. 1.  How is the performance measured and does it meet AIMR standards?  Professionals will know AIMR stands for Association for Investment Management and Research.  ITA Wealth Management readers … [Read More...]