100 Level

Keeping Portfolios Simple

Three Sample Portfolios Complicated portfolios discourage investors and that is why I am attempting to simplify the portfolios tracked here at ITA Wealth Management.  There are many examples of possible portfolios in the literature, particularly in books by Faber-Richardson, Swensen, and Bernstein.  Let's start with one of the simple portfolios laid out by David Swensen. While Swensen does not … [Read More...]

Critical Questions

When it comes to investing, critical questions need to be asked over and over. Right now I am seeking an answer to whether one should be involved in active or passive management. Should one seek active management or is it better to become a passive investor? Long-time readers of ITA Wealth Management know that I come down on the side of passive investing as that is what the data is telling me. … [Read More...]

300 Level

Rebalancing Threshold Limits

What is the proper percentage to use as the Threshold Limits or Boundary Targets for rebalancing a portfolio?  For example, if we set a target of 15% for an asset class, what upper and lower limits are considered acceptable if the asset class is considered to be in balance.  In the ITA Wealth Management portfolios we have gone as high as 35% and as low as 20% for our target limits.  … [Read More...]

“Creme List” for March 18th

Platinum members will find the current "Creme List" below.  CTSH was removed from the list as it did not make the top group anytime over the last 13 weeks.  One stock was added as I will mention below.  Look for consistency and movement up or down on the list.  Some shifting took place over the last week.  This list is only for your "Bingo" … [Read More...]

200 Level

Portfolio Performance: 12/3

Below is the first draft of the 12/3/2010 portfolio performance. First draft in that not all the November or December dividends are included for all the portfolios. Most of the portfolios are hanging on to leads over the VTSMX. Perhaps of more importance are the positive values showing up for the Sortino and Retirement Ratios.   [Table=49] * Insufficient data. Platinum memberships are … [Read More...]

Portfolio Performance Update: 19 May 2012

Several weeks flitted by without a portfolio performance update.  Here is the latest information (see data table below) after what we might categorize as a miserable stock market week.  The ITA Risk Reduction model is working!  It is doing exactly what it was designed to do - reduce portfolio risk while increasing relative return.  However, it is still too early to gloat, but … [Read More...]

400 Level

Maxwell Portfolio Examination: 5 May 2012

Tomorrow, May 6th, is the official day to update the Maxwell, but nothing is going to happen over the weekend so here is the May review of this portfolio.  Platinum readers know that the Maxwell is one of the five model portfolios for the ITA Risk Reduction experiment.  Below is the current Dashboard for the Maxwell. … [Read More...]

Seeking For Low Correlated ETFs

When the market shies away from equities and gravitates toward less volatile securities such as bonds and treasuries, we need access to those ETFs that have a low correlation with holdings such as VTI, VEU, and VWO.  What ETFs do we flee to when the equities market begins to wane.  If included in the ranking worksheet, we can easily identify those ETFs that have the strongest … [Read More...]