100 Level

Preparing For The Deficit Debate

What options are available to investors as we approach the deficit debate?  For many years raising the debt limit was a non-event.  However, it is a different political climate and we now need to cope with a large number of "non-negotiators" which in turn bring uncertainty to the financial markets all over the globe.  To deal with these uncertainties, here are some possible suggestions as to how … [Read More...]

The Efficient Market Hypothesis

Kurtis Hemmerling's article, "Do You Believe in The Efficient Markets Hypothesis Co-Out?" caught my eye and I am always interested in what other writers have to say about the Efficient Market Hypothesis.  Hemmerling writes the following. "If you choose to believe in the EMH, then you should simply invest in a broad market ETF such as one that tracks the S&P 500 (SPY), … [Read More...]

300 Level

Portfolio Update

Curie Portfolio: An Update In the screen shot below, Platinum members will see the Dashboard of the Curie Portfolio. Several asset classes are out of balance and I have numerous limit orders in place to take care of these inequities.  Unfortunately, the market walked away from many of my limit orders and that is why the ITA Index is currently outperforming the Curie Portfolio. You can see … [Read More...]

Bohr Portfolio Review

Bohr Portfolio Update Checking the numbers this morning, I note that the current prices of ETFs sold over the last month are now lower than the sale price.  At least for now, the move to protect capital was the correct one.  That could reverse today or any time before we move back into a full rebalanced position.  I did place a number of limit orders for ETFs representing asset … [Read More...]

200 Level

Risk Adjusted vs. Capitalization Asset Allocation Portfolio Construction

Is it better to construct a portfolio based on allocating assets around capitalization divisions or is one better off using a risk adjusted platform?  The following two screen shots show the details of these two approaches to portfolio construction.  In each case I am using ten ETFs that provide worldwide diversity.  Four years of historical data goes into the following Quantext … [Read More...]

Portfolio Performance: 4 November 2011

Below is the performance table for the 21 portfolios tracked here at ITA Wealth Management.  SR is the Sortino Ratio, IR represents the Information Ratio, and RR is our own Retirement Ratio.  I'm still in catchup mode so a number of portfolios are not current.  I will be working on updating all portfolios next week.  Readers will note the portfolios tracked using Captool … [Read More...]

400 Level

Managing Portfolio Uncertainty: How Does It Work?

In an effort to improve performance results and reduce portfolio volatility, a Tactical Asset Allocation (TAA) plan has been activated for both the Maxwell and Euclid portfolios.  Checking the latest Portfolio Performance data table, we see these two portfolios are trailing the VTSMX benchmark, an unacceptable condition.  Keep in mind this is an extreme strategy, but it is based on … [Read More...]

Bullish Percent Indicators: Four Switch Positions

Bullish Percent Indicator (BPI) information is a relatively new addition here at ITA Wealth Management.  It is another investment arrow we are including in our investment quiver.  A major change I made this week is to move from an arithmetic measurement of the box size to a log or percentage scale for calculating the box size.  Just as it makes sense to calculate portfolio increases … [Read More...]