100 Level

Stock Picking: Why It Is So Difficult To Be Successful

Shortly before the editor to the old blog collapsed, I posted this entry and I want readers to be sure to see it. Are you tracking the performance of your portfolio and measuring the Internal Rate of Return (IRR) with respect to the IRR of an appropriate benchmark? If not, why not? Investors not engaged in this level of measurement will likely find this discussion of little use. Shall we say, … [Read More...]

Asset Allocation Example

In the table below, viewers see the asset classes discussed in a prior blog entry.  We are looking at fifteen asset classes, including Cash. In the second table the sample asset allocation is broken down into percentages and we cut out the Core holding, moving the number of asset classes to twelve. [Table=6] … [Read More...]

300 Level

Portfolio Review: Schrodinger Update – June 16, 2011

Schrodinger Portfolio Review It is time to review the Schrodinger Portfolio, perhaps the most "passively" managed portfolio tracked here at ITA Wealth Management.  We still hold ETFs purchased back in late 2000 and early 2001.  The asset allocation plan has changed very little over the ten plus years of operation.  During this period a few iShares were sold as we moved … [Read More...]

Creating The Customized ITA Index Benchmark For The Kenilworth And Other Portfolios

Constructing a customized benchmark to use as a performance standard is nearly as important as putting together a Strategic Asset Allocation (SAA) plan for a portfolio.  If one does not benchmark a portfolio how is it possible to know how well the portfolio is being managed?  To understand what is required to come up with a good benchmark, check this reference.  I also recommend … [Read More...]

200 Level

Portfolio Performance: ITA Ratio

When there is a lot of blog activity it is easy for the Portfolio Performance data table to be pushed off the screen and missed by readers unless they remain current with the new entries.  I'm bringing back the August 13th table with additional data.  Added to this table is the recently developed ITA ratio, another risk measurement that sets a high bar for portfolio … [Read More...]

Is There An Investment Style That Is Truly Passive?

We read a lot about active vs. passive investing, and mixed into that discussion is index investing.  About four months ago I wrote a series of articles on this very subject where I was rebutting an Internet article.  On this blog I track eleven portfolios that run the gamut from passive to mosaic to active.  To understand each, it helps to go back to Harold Evensky's … [Read More...]

400 Level

“Delta Factor” Projections For Sector ETFs

While I do not build portfolios around sectors of the stock market, it is important to review sectors ETFs as it provides another view of market conditions.  We examine the Bullish Percent Index information as shown in this article, to see where the market as been and is it over bought or under sold.  When the BPI values are above the 70% line, as most are today, we argue the market is too high to … [Read More...]

Worry Free Investing: Young Readers – Listen Up!

No, I am not obsessed with risk even though I've recently written quite a bit on the subject.  Why the concern about risk as the market seems to be having a good summer?  The specter of rising interest is a major fear for this reason.  If interest rates were to rise to the same level they were when George Bush (43) took office, the amount of money the U.S. Government will need … [Read More...]