100 Level

Passive – Active Investing Reviewed

Investors interested in knowing why I prefer taking a Passive-Index approach to investing will find this article of interest.  I do want to amplify one point I did not go into in the article. I mentioned the negative of not having complete control over Social Responsible Investing.  A few years ago I went through a detailed analysis of finding where several hundred "sin … [Read More...]

Measures of Portfolio Risk

  Calculating Portfolio Risk If you have been following the ITA Wealth Management blog closely you know that I have been delving into portfolio risk with interest and intensity.  This morning I pulled William J. Bernstein's first investment book off the shelf to see if he had anything to add to this discussion.  Sure enough, "The Intelligent Asset Allocator" includes … [Read More...]

300 Level

$100,000 Starter Portfolio

For prospective investors just beginning a portfolio, here is a sample based on the Momentum-Optimization Model (MOM).  MOM is discussed elsewhere on this blog.  Just search to full title or MOM to find this material. We first begin with a ranking of all the securities we might consider for our holdings.  This includes approximately 30 ETFs.  Most are commission free to clients of … [Read More...]

“Creme List” For 27 May 2011

Top Stocks Platinum members can view the "Creme List" of stocks for 5/27/2011.  Stocks removed from the list this week are:  CVS, EXPD, CHKP, and SPLS.  It is unusual to see so many excised in the same week. No new companies were added to the list and an old favorite recaptured the top position.  Note that only two stocks are priced to buy. … [Read More...]

200 Level

Keeping Portfolios Simple

Three Sample Portfolios Complicated portfolios discourage investors and that is why I am attempting to simplify the portfolios tracked here at ITA Wealth Management.  There are many examples of possible portfolios in the literature, particularly in books by Faber-Richardson, Swensen, and Bernstein.  Let's start with one of the simple portfolios laid out by David Swensen. While Swensen does not … [Read More...]

Retirement Portfolio: Part Three

Part three of this series of retirement preparations shows how one might optimize the array of ETFs presented in the earlier two blog posts.  In the following screen shot I set up a number of constraints and one was to hold the Diversification Metric to the 40% standard.  I also included BND, Vanguard's Total Bond ETF in the mix of investments.  Even by forcing none of the bonds to hold more than … [Read More...]

400 Level

Euclid ITA Risk Reduction Update

This was the weekend for the Euclid examination.  Here is a report of what happened.  First, take a look at the current Dashboard for this portfolio shown below.. … [Read More...]

Risk Management: Benefits of the ITA Risk Reduction Model

Platinum members who employ the ITA Risk Reduction model will find the following guidelines of interest.  When your portfolio comes up for review, and I recommend using a 32-Day review period, run through a number of steps.  Before I get to the steps, here are the reasons for selecting the 32-Day interval. It slowly rotates the review through the month rather than always having it occur at the … [Read More...]