100 Level

Diversify – Diversify – Diversify

If you have questions why the portfolios tracked here at ITA Wealth Management include so many asset classes, just read the referenced article, “The Benefits of Low Correlation.” After reading this article, I had second thoughts about allocating only 5% to commodities. However, 5% should be adequate due to our emphasis on value and small-cap stocks as well as participating in … [Read More...]

Lost My Spouse – Part II

Now that you know where the investment records are kept and all the security information is identified, what do you do now?  If the portfolio is set up as recommended on this blog, you will not need to do anything for at least a year.  At a time of loss, investment decisions are not something anyone wants to confront. Examine the table below and familiarize yourself with the different … [Read More...]

300 Level

Market Conditions of Concern

Market Worries Two days ago I wrote a piece on Technical Analysis and how the market is overbought.  This morning I ran into a related column and the reference is provided below.  The concern is tied to mounting oil prices.  Not addressed in the article is the assault on jobs at the state level.  If the the widespread cuts continue, Ben Bernanke predicts future growth could … [Read More...]

Balancing Risk Over A Ten ETF Portfolio

In response to a Platinum member, the following QPP analysis is set up in a manner to equalize risk across the different ETFs rather than set up a capitalization asset allocation.  Note that I am using a 56-month time frame as I wanted to span the last bear market while avoiding any short-record issues with ETFs that have not been in existence for five years. To come up with the percentages … [Read More...]

200 Level

Portfolio Performance Update: 15 October 2010

The data table below includes updates for the ten portfolios tracked using the Captool software. Those portfolios are current through 9/30/2010 and the ten portfolios tracked using the TLH spreadsheet are updated through 10/15/2010. If you have never seen one of these Portfolio Performance data before, the last two columns, Sortino Ratio (SR) and Retirement Ratio (RR) are significant in that they … [Read More...]

12-ETF Portfolio: Another Look

A Basic Portfolio Simplicity, when it comes to design, is an admirable feature and the 12-ETF Portfolio embodies this characteristic.  In addition, the projected numbers are quite respectable as readers can see from the following QPP analysis.  When designing or constructing a portfolio specific goals are set, although it is more difficult to attain those goals when the market is priced … [Read More...]

400 Level

Gauss Portfolio Review: Efficient Frontier, Rankings, and Decisions

Thirty-three days rolled by and it is once more time to update the Gauss Portfolio.  Remember, this is one of the risk reduction model portfolios. Efficient Frontier:  Recent buy and sell adjustments moved the current portfolio (diamond dot) much closer to the optimized portfolio (red dot on EF curve).  In fact they are almost one and the same.  Platinum members can do a search of Gauss to see … [Read More...]

Multi-Asset Class Investing

Multi-asset class investing or multiple asset classes is a title that comes right out of Richard A. Ferri’s excellent book, “All About Asset Allocation.” While my reference is to Ferri's first edition, I would pay the few extra dollars and purchase the second edition.  Nudged by a fellow asset allocation investor, I went back and reread Chapter 4 of Ferri’s book. … [Read More...]