100 Level

Momentum-Optimization Model

If you have not checked into ITA for several weeks, you are missing critical information and I hope you will carefully read this blog post as this marks a revision of the ITA Risk Reduction Model.  While I will not take the time to explain every detail in one blog post, readers will see the Optimization-Momentum Model in action over the next weeks and months.  Over time I want to demonstrate how … [Read More...]

Top Ten Investment Books: A Revised List

  Education is a crucial step toward financial success. Where does one begin when trying to come up with the top ten investment books?  Here is my revised list, but be forewarned, this is not a list of books that focus on either fundamental analysis of stocks, nor is it a list of books explaining technical analysis.  In fact, the list below is the antithesis of stock picking.  My … [Read More...]

300 Level

Monthly Portfolio Review For Einstein Portfolio: 25 July 2011

Reviewing portfolios such as the Einstein can be considered a tedious task, or one might accept it as a challenge to see if one can improve the asset allocation plan.  A change is coming to this portfolio.  Platinum readers will note the change in the Dashboard worksheet as I am preparing to add international bonds to the Einstein.  Where will the percentage come from to populate … [Read More...]

Please Keep It Simple: A Basic Seven-Eight ETF Portfolio

Is it possible to put together a simple portfolio?  I don't want anything too complicated, particularly when I am just beginning my investing career.  Such requests are common and the answer is - yes, it is possible to build a simple portfolio.  The diversification may not be the best, but that issue can be address later.  Below is a basic portfolio any investor can … [Read More...]

200 Level

Active vs. Passive Investing: Part 6

Section Six of the Active vs. Passive Investing paper includes a number of salient points.  The author begins his argument with this position. "The academic research seems to avoid addressing this issue head on.  There are always very good reasons to disregard their conclusions due to methodology.  One really objectionable practice is to pretend to be measuring … [Read More...]

Examining a Basic Portfolio of 25 Exchange Traded Funds

Investor building a global portfolio need from 15 to 25 ETFs or approximately the same number used in The Feynman Study.  In this example portfolio I am using the upper limit of 25 ETFs.  What I did was to run the numbers using the Hoadley-HedgeHunter spreadsheet and then follow the percent-shares recommendation as you will soon see below.  But first we examine the efficient frontier … [Read More...]

400 Level

Retirement Ratio – What Is It?

Understanding the Retirement Ratio In each Portfolio Performance data table readers see the column labeled, RR, or Retirement Ratio. Just what is this ratio and how is it calculated? To understand the Retirement Ratio first requires an understanding of the Sortino Ratio (SR) as the Retirement Ratio is a modification of the SR. Mathematically, the Sortino Ratio is expressed as follows. SR = (P - … [Read More...]

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...]