100 Level

Modest Portfolio

Portfolio for Advanced and Beginning Investors Return and risk are highly correlated terms when it comes to portfolio construction.  A goal, when running analysis on sample portfolios, is to come up with a Return/Ratio in excess of 0.60.  A second goal is to seek diversification so the Diversification Metric exceeds 40%.  That goal floats as market conditions change.  A third … [Read More...]

Active vs. Passive Investing

ITA Wealth Management readers will recall the five decisions discussed in "The Investment Answer," a short book authored by Daniel Goldie and Gordon Murray, who died of brain cancer last month.  Those five fundamental decisions are:  1) Do-It Yourself Decision, 2) Asset Allocation Decision, 3) Diversification Decision, 4) Active versus Passive Decision, and 5) Rebalancing … [Read More...]

300 Level

Low Risk Portfolio: Six Dividend Stocks Make A Difference

The following portfolio was sent in by an ITA member who is interested in an analysis of this combination of ETFs and dividend stocks.  There are variations one might build from the stocks submitted.  The following is one portfolio. … [Read More...]

Kepler Portfolio Update: 13 March 2012

Another month rolls around for the Kepler Portfolio and all is going well.  Once more we begin by examining the Dashboard, the worksheet extracted from the TLH Spreadsheet.  The Dashboard is the Strategic Asset Allocation plan for the portfolio.  All seventeen asset classes are used to fill out the asset allocation program for this portfolio. Platinum members will note the tilt … [Read More...]

200 Level

Active vs. Passive Investing: Part 12

This is the last in a series of 12 blog posts where I rebut the Active vs. Passive Investing paper.  Section Twelve (12) of the paper contains is a very clever argument.  The conclusion is that retail investors outperform the market.  However, arguments are not the same as evidence.  Nevertheless, here is the argument. If you accept the measurement of passive returns to … [Read More...]

Portfolio Performance: 2 December 2011

This past week was a very good one in absolute terms or when comparing with historical data as nearly all portfolios gained ground.  In other words, the Internal Rate of Return (IRR) showed improvement.  However, all portfolios lost yardage when compared with the VTSMX benchmark.  It must be noted that dividends and the most recent trades are not included in the results as only the … [Read More...]

400 Level

Bohr On April 30th: Example of New Spreadsheet

This is a sneak preview of the new optimizer-momentum spreadsheet David created today.  The data is what the Bohr portfolio looked like at the end of April.  Some trades occurred in May and those will show up when the Bohr is updated in a little less than a week. Efficient Frontier:  The efficient frontier looks the same as before.  Readers familiar with this graph will not the Bohr Portfolio … [Read More...]

ITA Risk Reduction Followers

Early this morning I ran through the primary ETFs used to populate most portfolios and only commodities and gold are in the doghouse.  That is, DBC and GTU are currently priced below their 195-Day Exponential Moving average.  To see what this looks like, here is the link for DBC, our primary commodity holding. Portfolios managed using the ITARR model are out of gold and commodities.  I may hold … [Read More...]