100 Level

Beginner’s Portfolio

If just starting out as an investor, the following portfolio is a slight modification from the Faber-Richardson Ten Portfolio as published in their book, The Ivy Portfolio.  I replaced GSG, a commodity ETF with a gold ETF, GTU.  Instead of VB, I inserted IWN which provides a value tilt to the portfolio. This material is not available for publication elsewhere on the Internet. … [Read More...]

Lost My Spouse – Part III

Determine your long-term cash flow. How much monthly income is required?  Will income from pension and social security meet the cash flow requirements or is additional money required from the portfolio?  For most single retired individuals, some income is required from the portfolio.  My recommendation is to pull no more than 4% annually from the portfolio.  The lower the … [Read More...]

300 Level

Asset Allocation: Medium-High Risk Portfolio

This is the fourth portfolio in this series of relative risk allocation plans based on the data table found in this blog entry.  Note how the projected return is rising, but so is the projected uncertainty.  Return and Risk are highly correlated.  It is difficult to find a combinations of tickers that will increase the projected return while driving down the projected standard … [Read More...]

“Creme List” as of 1 July 2011

Platinum members interested in spicing up their ETF portfolios with a stock or two will find the following list of companies of interest.  No companies were purged due to missing 13 consecutive weeks, but a few are in jeoparty of losing their position next week.  Two companies are new to the list.  Stock selection is not the focus of portfolio construction here at ITA Wealth … [Read More...]

200 Level

Portfolio Performance Data: 10 August 2013

  What happened since the last portfolio performance back in late July?  The results are mixed and the changes were slight as one might expect. Portfolios that gained ground on the ITA Index were: Curie, Einstein, Maxwell, Euclid, and Madison.  The Newton, Schrodinger, Kenilworth, and Kepler held even and only the Bohr and Gauss lost ground.  Keep in mind that not all dividends have … [Read More...]

Portfolio Stress Test: Part 2

Stress Testing the Curie Portfolio Go back and review Stress Test Part 1 to understand the original information used when applying a three standard deviation loss for the Curie Portfolio.  As you will recall, the owner of the Curie Portfolio plans to withdrawal, using today's rates, $40,000 from a $500,000 portfolio.  Due to the addition of new money, the portfolio should be closer … [Read More...]

400 Level

ETFs to Purchase

As you look at the new week, here is my analysis for the seven ETFs we are using with the ITA Risk Reduction model.  Keep in mind that this study is in the early stages and will likely need to be refined as time goes on. … [Read More...]

U.S. Equities Is The Place To Be Invested

It has been many weeks since I ran a screen on international markets, particularly individual countries.  I have approximately 40 countries on my list and since it takes the Hoadley optimizer a long time to run such a large number of securities I broke them up into two groups.  In both runs, VTI ranks at the very top.  Here is an example. … [Read More...]