100 Level

Review of John Bogle Book

Larry Swedroe, one of our favorite investment authors, writes a brief review of John Bogle's latest book.  Click here to see this review. … [Read More...]

Stock Picking: Why It Is So Difficult To Be Successful

Shortly before the editor to the old blog collapsed, I posted this entry and I want readers to be sure to see it. Are you tracking the performance of your portfolio and measuring the Internal Rate of Return (IRR) with respect to the IRR of an appropriate benchmark? If not, why not? Investors not engaged in this level of measurement will likely find this discussion of little use. Shall we say, … [Read More...]

300 Level

Portfolio #3: Ages 36 – 55

This may be the most difficult portfolio, of the five in this series, to construct for several reasons.  1) It covers a significant working and investing period.  2) The early years of investing from ages 36 - 55 are critical so one does not want to give up too much in the way of return.  However, the portfolio cannot be too aggressive during the tail end of this age bracket as the … [Read More...]

Preparing A Portfolio For The Momentum Model

Assume one had an existing portfolio and you were interested in shifting from a Strategic Asset Allocation (SAA) model to a Momentum model.  In other words, you are serious about moving from a Buy-Hold-Rebalance approach to a Ranking-Rebalance model.  It helps to deal with specifics so I am going to use one of the portfolios where we have already been using the ITA Risk Reduction model or a slight … [Read More...]

200 Level

Portfolio Performance: 12 August 2011

Asset Allocation wins again.  The following data table is what ITA Wealth Management is all about.  It is about setting up a Strategic Asset Allocation plan, following through with a passive style of investing, and monitoring the results to see how well the portfolios compares with their benchmarks. While few folks expected to see absolute gains over the last week to ten days, in such … [Read More...]

Risk-Parity: Is This Portfolio For You?

A Close Look At A Risk-Parity Portfolio* The idea of risk-parity has been around for a number of years, if not by name, certainly by concept.  Risk-Parity is an alternative method of constructing portfolios.  Instead of building a portfolio around allocation of capital the portfolio is emphasis is placed on allocation of risk.  All eleven portfolios tracked here at ITA Wealth … [Read More...]

400 Level

Preparing For Kepler Review

In a few days the Kepler Portfolio comes up for review, so here is the preparation material.  I'll walk readers through the Efficient Frontier, Ranking, and Buy-Hold-Sell (BHS) recommendations. Efficient Frontier:  The Kepler requires some adjustments before the current allocation is fully optimized.  What to do is shown in a later screenshot.  Holdings such as TIP are not improving the … [Read More...]

Ranking Critical ETFs

Now that I have the capability to work with more than 20 ETFs within the ranking worksheet, I made a list of the critical securities one might use to construct a portfolio.  There are three sector ETFs in this group and a special ranking of sector instruments will be conducted to determine which are part of this larger grouping. While the ranking is important, also pay attention to the … [Read More...]