100 Level

ITA Receives Special Attention

A few weeks ago, while I was relaxing in the basement, a telephone call from a well-known investment house showed up on my caller identification screen.  Assuming it was a "chum for client" call, I did not pick up.  However, my wife answered the phone and told me "ABC Investments" wanted to speak with me. I was prepared to "stiff-arm" any requests to … [Read More...]

Avoiding Losses

How does one avoid major losses to the portfolio? Here are the two simple Faber - Richardson rules. … [Read More...]

300 Level

Portfolio Review: Schrodinger Update – June 16, 2011

Schrodinger Portfolio Review It is time to review the Schrodinger Portfolio, perhaps the most "passively" managed portfolio tracked here at ITA Wealth Management.  We still hold ETFs purchased back in late 2000 and early 2001.  The asset allocation plan has changed very little over the ten plus years of operation.  During this period a few iShares were sold as we moved … [Read More...]

Bohr Portfolio Update: 24 September 2012

Several changes took place in the Bohr Portfolio since the last update.  I sold shares of VOT in order to bring mid-cap growth into balance.  I also sold a few shares of VTV, but large-cap value is still 1.1% above target.  Cash from these sales was used to purchase VWO, PCY, and DBC.  Emerging markets and commodities are within target limits, but I still need to pick up more … [Read More...]

200 Level

“Decade” Portfolios

Age Appropriate Portfolios Several weeks ago a reader wrote and asked me if I had "age oriented" portfolios on the blog.  While those were not the exact words, the question was designed to extract more precise portfolio direction than descriptions such as Einstein, Bohr, and Schrodinger.  Rather than build portfolios around high growth or conservative yield, I chose to go with … [Read More...]

Ranking Model Favors Small-Cap and Value ETFs

While the Quantext Portfolio Planner (QPP) software shows a high correlation between the "Big Nine" U.S. Equity asset classes, the Ranking Model, recently unveiled, shows a definite bias toward small-cap and value ETFs.  Below is the data table based on the latest three years of data.  To readers who are aware of the Fama-French research, this comes as no surprise. … [Read More...]

400 Level

ETF Evaluations In Preparation for Euclid Risk Reduction Analysis

At the close of the market tomorrow (1/12/2012) I will examine the relative price of each ETF used in Euclid and compare it with its 195-Day EMA.  For example, in the slide shot below the price of VTI is well above its 195-Day EMA.  The ITA Risk Reduction model calls for holding a full position in VTI.  Checking the Euclid moments ago, Large-Cap Blend (VTI) is slightly over target … [Read More...]

Looking Ahead to Kenilworth Risk Reduction Analysis

Tomorrow, Tuesday, is the scheduled date to run the ITA Risk Reduction analysis on the Kenilworth Portfolio.  Both emerging market and commodity asset classes are under target.  Checking this morning, I note that Vanguard's emerging market ETF, VWO, is nearly a dollar above its 195-Day Exponential Moving Average - and likely to remain there after the market close tomorrow.  This … [Read More...]