100 Level

Sample Portfolio Requested By Platinum Member

The following set of tickers and percentages were sent to me for analysis.  I used five years of historical data and set, as I generally do, a 7.0% return projection for the S&P 500.  I used TIP (1.0%) for the cash holding.  That choice has little impact on the final projections.    Below is the analysis data.  Instead of me writing up my observations, I'll … [Read More...]

Asset Allocation: The Percentages

Assigning Percentages to Asset Classes Assuming the basic five to seven asset classes are identified, the next step is to determine what percentage to invest in each asset class. Before we tackle that problem, let's review the asset class issue. Below are the basic asset classes one will consider for a long-term portfolio. I've also included tickers suggestions for each asset class. 1. … [Read More...]

300 Level

Explaining The Buy-Hold-Sell Recommendation Worksheet

Platinum members may be interested in how I go about using the Buy-Hold-Sell worksheet.  In the following blog entry I am using the upcoming Curie Portfolio as an example. … [Read More...]

Mosaic Portfolio Lookback – 31 March 2009

Here we are in the depths of the bear market on March 31, 2009.  What signals or information come out of a QPP analysis and what is the Delta Index worksheet showing us?  Look over the QPP analysis carefully and see if you spot any unusual signals. The historical data does not look good, but the projections for return and standard deviation are about average.  We have not seem too … [Read More...]

200 Level

Fundamental Principles for Constructing a Portfolio

The "science" of portfolio construction requires numerous fundamental principles.  Long-term portfolios call for an orientation toward return or growth through proper diversification.  Growth needs to be tempered so as to handle times of recession, deflation, and inflation.  As described in the Harry Browne "Permanent Portfolio" one needs to prepare for the four stages of the market; prosperity, … [Read More...]

Keeping It Simple

Investors wishing to keep their portfolio as simple as possible, yet obtain global diversification, can do it with no more than three ETFs. 1.  VTI will cover all U.S. Equities. 2.  VEU is the all-world except U.S. international ETF.  This ETF provides the global exposure we require, even for a very simple portfolio. 3.  BND, or an all bond ETF provides a diversifier or risk … [Read More...]

400 Level

Bullish Percent Indicators for Week of 8 March 2013

For a broad look at market conditions as well as specific sectors, check out this article on Bullish Percent Indicators for last week.  I try to post the BPI information each week either on Seeking Alpha or here at ITA Wealth Management.   … [Read More...]

Risk Reduction Model Clarification

In an effort to clear up some misunderstandings surrounding the ITA Risk Reduction model, permit me to go into a few more details.  My initial move, late last year, was to examine a number of portfolios I track and select several that were lagging the VTSMX benchmark.  Initially, I was only going to apply the ITARR model to three portfolios; Maxwell, Euclid, and Madison.  While the … [Read More...]