100 Level

Sharpe Parity, Risk Parity, Equal Weights and Simple Moving Averages

Investors interested in investing methods discussed on this blog, and to a greater degree, over on http://itawealth.com, will find this article of interest. http://seekingalpha.com/article/2854706-does-sharpe-parity-work-better-than-risk-parity?ifp=0 Followers of ITA Wealth Management will find the latest material over on itawealth.com so please make your way over the this site.   … [Read More...]

Are You Warren Buffett or Charlie Steadman?*

For every Warren Buffet there are a hundred Charlie Steadman's.  While nearly every investor has heard of Buffett, few remember Charlie Steadman. Is there a reason for this short memory? “Until he died at age 83 in 1997, Charlie Steadman burned through investors’ assets at a rate unseen in the fund business since the Great Depression–and, we hope, never to be seen … [Read More...]

300 Level

How Well Did The Beginner’s Portfolio Perform?

This weekend I posted an article over on Seeking Alpha on a Beginner's Portfolio.  One comment got me to thinking - how well did this optimized portfolio perform over the last five years, the time frame I used for the SA article.?  I considered this to be a beginner's portfolio in the sense that it holds only 10 ETFs and it is not all that sophisticated or complicated.  My personal preference is … [Read More...]

Analysis of Suggested Portfolio

At the suggestion of an ITA reader, below is the QPP analysis of a potential portfolio.  This sample portfolio is made up of investment vehicles I find both familiar and unfamiliar.  ALT and RALS do not have three-year records so that will throw off the analysis.  Investments with insufficient records generally result in higher than expected projected returns and lower than actual … [Read More...]

200 Level

Optimizing a Basic Portfolio: 3 and 5 Year Analysis

The sample portfolio shown below consists of 16 ETFs that cover all major markets found in the eleven portfolios tracked here at ITA Wealth Management.  VTI covers all of the "Big Nine" asset classes.  We add VIG for added dividends and IWN for any possible push toward small-cap value, or where Fama and French find added alpha. VEU is our developed international market and VWO is the ETF used … [Read More...]

Five-Year Analysis of “New Portfolio”

As promised, Platinum members can see the asset allocation for a portfolio designed to take advantage of the economy when it is in a growth stage while defending against inflation, and to a lesser degree, deflation.  While the portfolio is not recession proof, there are aspect to the following list of ETFs that will buffer against a recession. … [Read More...]

400 Level

Risk-Parity Portfolio: What Is It And What Does A Risk Portfolio Look Like?

Reducing Risk Through Risk-Parity Risk-Parity: Have you heard of the term or seen reference to this style of portfolio construction?  Join the crowd if this is new to you, even though the Risk-Parity idea has been around for quite a few years.  Risk-Parity is an alternative approach to portfolio construction where assets are allocated based on risk rather than allocation according to … [Read More...]

Bullish Percent Index Update: 9 August 2013

Each week readers are treated to a broad look at major U.S. markets as well as sectors of the equities market.  This week shows slight declines in the major markets, but not sufficient to turn the ball over to defensive teams.  All the major markets remain sufficiently positive to record X's in the right-hand column of the Point and Figure graphs.  Examine both tables below for detailed … [Read More...]