100 Level

Investing Road Map

Searching for useful investing information is an ongoing task and yesterday I found something of use for every reader of ITA Wealth Management. Paul King has written a 50-page online investment book that is available to download if you will go to the right-hand edge of this page and look for Interesting Sites. Seek out the Investing Road Map link to download the PDF file. You will need to know … [Read More...]

Rebalancing Portfolio: Blending Dashboard and Optimizer

Now that an optimizing tool is available, how does one rebalance a portfolio by combining the output of an optimizer with the Dashboard guidelines?  The larger topic is one of asset allocation so I will start with the following Dashboard that defines an asset allocation plan. Dashboard:  Assume the following Dashboard lays out the Strategic Asset Allocation plan for a portfolio.  Only pay … [Read More...]

300 Level

Asset Allocation: Why Select This Mix of ETFs?

Gauss is the newest portfolio launched (12/27/2011) here at ITA Wealth Management.  While the annualized performance is a respectable 25%, it still lags both the VTSMX and ITA Index benchmarks as it took time to populate all fifteen equity and bond asset classes.  The broad market was in a positive mood during the launch phase and as a result, the portfolio fell behind the … [Read More...]

Analysis of Sample Portfolio

A new Platinum member requested an analysis of the following portfolio.  I first ran the list of stocks and ETFs through the QPP analysis process.  Here is that screenshot.  Note that I assumed the S&P would increase at an annualized 7% rate and the data period is for five years. … [Read More...]

200 Level

Five-Year Analysis of “New Portfolio”

As promised, Platinum members can see the asset allocation for a portfolio designed to take advantage of the economy when it is in a growth stage while defending against inflation, and to a lesser degree, deflation.  While the portfolio is not recession proof, there are aspect to the following list of ETFs that will buffer against a recession. … [Read More...]

Growth: Portfolio #5

Moving one step closer to increasing the projected return, this post is about the Growth Portfolio, number 5 out of 6 in this series.  Bond and income is reduced to 16% in this portfolio so it is definitely tilting toward the aggressive side of investing.  Two ETFs, BND and IEF are eliminated from this portfolio as we will concentrate our income holdings in TIP and TLT. Platinum … [Read More...]

400 Level

What Is A Good Sortino Ratio?

Seeking a Good Sortino Ratio A reader of ITA Wealth Management was seeking an answer to the question, what is a good Sortino Ratio?  The simple and quick answer is - anything above zero.  Check this definition of the SR.  While the equation is quite simple, the difficulty comes in calculating the denominator. SR = (P - T)/DR where P is the portfolio return T is a portfolio … [Read More...]

Maxwell Portfolio Update: 5 July 2012

Examining the Maxwell asset allocation below, we note that developed international and emerging markets are still priced below their respective 195-Day Exponential Moving Averages (EMAs).  We are also below target in commodities as we are waiting on a price rebound.  Exposure to growth stocks is accomplished by holding shares in the blend column. … [Read More...]