100 Level

Huffington Post Article

Remove the sphygmomanometer from your arm before reading this Huffington Post article on the 10 Biggest Wall Street Lies. … [Read More...]

Risk-Parity: A Brief Explanation of How Risky a 60/40 Portfolio Really Is

While I have a sample Risk-Parity portfolio coming out early tomorrow morning, I want to rush out a brief description of how risk is calculated.  This not for the mathematically squeamish, but the concept is not difficult if one can get past one step in the logic.  Don't be surprised if this concept does not alter how portfolios are put together here at ITA Wealth Management.  … [Read More...]

300 Level

Value Oriented Portfolio

Last evening a value oriented portfolio was mailed to me so I thought I would run it through a Quantext Portfolio Planner analysis.  Unfortunately, three of the thirteen ETFs have "short records."  This simply means the data does not extend back a minimum of three years. The ETFs with limited data are: MGV, VXUS, and VSS.  Nevertheless, here are the results. To view this … [Read More...]

Smartest Portfolio You’ll Ever Own?

Below is a portfolio I extracted from Daniel Solin's recent book, "The Smartest Portfolio You'll Ever Own."  Before I run a QPP analysis on one of the suggest portfolios, let me point out that the BWZ ETF did not have a three-year record.  As a result, the following analysis runs for only 31 months.  Under current market conditions, my preference is to use 48 … [Read More...]

200 Level

Basic Information for Momentum-Optimization Model Investors

Investors wishing to set up a basic portfolio will find all the essential information in the following three screenshots.  The slides are as follows. Ranking of ETFs that will provide global coverage and include low correlated securities that can be used during bear markets. Current Buy-Hold-Sell recommendations for rebalancing assume the investor is employing the ITA Risk Reduction … [Read More...]

ITA Portfolio Performance: 26 May 2012

While the individual portfolios increased in value this week, nearly all lost ground with respect to both the ITA Index and VTSMX benchmarks.  That is to be expected any time the market moves up considering that many of the portfolios are out of a number of asset classes and in cash or other income generating instruments.  Portfolios such as the Curie, Newton, Schrodinger, Einstein and … [Read More...]

400 Level

Preparing for Euclid Update

This pre-update is something I've not done before as I did not have some of these tools just a few weeks ago.  This blog entry takes a look at the Efficient Frontier of the Euclid and compares it with the S&P 500.  In addition, I look at the Rankings to see if some available cash might be used to bolster shares in ETFs that are expected to perform well over the next few months. Efficient … [Read More...]

Domestic Real Estate (VNQ): A Closer Look

Domestic real estate is one of our primary asset classes and we use VNQ as the ETF to populate this asset class.  Of the major eight ETFs used in the ITA Risk Reduction model portfolios, VNQ is one that has yet to drop below its 195-Day EMA.  So far, demand exceeds supply.  In the following two graphs, we take a closer look at the technical indicators for VNQ to see if we can divine … [Read More...]