100 Level

Franklin Portfolio Introduced

Several weeks ago I hinted at the possibility of tracking a new portfolio.  Today I am officially announcing the launch of the Franklin Portfolio.  Here at ITA Wealth Management, portfolios are named after scientists and presidents.  The Franklin Portfolio carries the name for several reasons.  While never president of the U.S., Benjamin Franklin was an important figure in … [Read More...]

Index vs. Passive Investing

Harold R. Evensky, in his Wealth Management: The Financial Advisor's Guide to Investing and Managing Client Assets book, makes a distinction between index and passive investing.  The distinctions can be found at this location.  Few readers are unaware of the differences between active and passive management, but the subtle definitions between index and passive management deserves some … [Read More...]

300 Level

Portfolioist Portfolio: Looking For Additional Diversification

Before digging into the following Quantext Portfolio Planner (QPP) analysis too deeply, read Geoff Considine's articles on portfolio diversification.  The first article lays out the basic logic for diversification and the second article goes into more details.  In the following analysis, I take the portfolio and run it through the QPP wringer to see what projections are in store for … [Read More...]

New Normal Portfolio Revisited

Nearly two years ago, the New Normal Portfolio was launched by one of the ITA clients.  If you have been reading the comments, you know this is a defensive oriented portfolio.  Below is the latest QPP data on the NN.  The projected Return/Uncertainty (or Risk) is 0.57.  As I recall, when this portfolio was established two years ago, the ratio was well above 0.60.  The … [Read More...]

200 Level

Portfolio Performance: 21 January 2012

This was a good week for most of the portfolios.  Not only did we see absolute gains, but relative improvement as well.  The majority of the portfolios gained a little ground on either the ITA Index, the VTSMX benchmark, or one of the three uncertainty measurements. The exaggerated figures related to Gauss are to be expected as this is a young portfolio.  Annualized calculations … [Read More...]

Captool Performance Data Table

February broker statements are available and I've been working since early morning updating the portfolios tracked using Captool software.  This past month was a good one for most investors as the portfolios, in general, gained ground on the benchmarks.  I'll know more details after updating the TLH spreadsheets.  The performance data table, shown below, is available to … [Read More...]

400 Level

Seasonal Timing Strategy Update

Now that May is not far away articles and blog posts are springing up around the adage:  "Sell in May and go play" or "Sell in May and go away."  That is, play or stay out of the market until after Halloween.  I've written about this seasonal timing model myself, but is there anything to it?  After all, is the market not efficient?  If you Google Seasonal Timing Strategy a long list of articles … [Read More...]

International Equities: “Delta Factor” for Different Periods

After alluding to how "Delta Factor" projections might be used to enhance the performance of a portfolio, some attention needs to be paid to the time span selected for the analysis as it does make a difference.  To illustrate this point, I've selected a number of international equity ETF representing different countries.  Platinum members will see the list in the following … [Read More...]