100 Level

Iteration Solution

Platinum members using the TLH spreadsheet may find an iteration issue from time to time when the IRR calculation for an investment moves from positive to negative or negative to positive.  The Excel™ SS needs a little nudge to launch the iteration calculation. Go to the TLH SS Help page and reference the #7 help video.  To find the TLH SS Help page, look across the navigation … [Read More...]

Sample Stock Oriented Portfolio: A QPP Analysis

The following portfolio was submitted by a Platinum member for analysis.  The first look is a Quantext Portfolio Planner (QPP) analysis of the holdings.  This is not the exact portfolio as I use IEF as a cash equivalent.  The portfolio actually holds a number of annuities so the yield is likely higher than the 2.64% shown in this analysis. QPP Analysis of Sample Portfolio:  MPC does not have a … [Read More...]

300 Level

QPP Analysis of Suggested ETFs

In the following analysis I show the make up of the suggested tickers.  VSS and MLPI did not have three-year records so I cut them from the list.  In the first slide I show the makeup of the portfolio using nearly equal percentages for each ETF.  In the second slide I show the "Delta Factor" projections using a four-year time span.  The third slide shows the … [Read More...]

Sample Portfolio Analysis

An ITA reader sent in the following portfolio for analysis.  Two funds, VXUS and VNQI, had short histories so the analysis is limited to 25 months of data.  Below is the QPP analysis and the correlation matrix for this group of holdings.  The S&P 500 is assumed to return 7.0% over the next six to twelve months. QPP Analysis:  Anytime a portfolio is projected to return approximately 100 … [Read More...]

200 Level

Portfolio Performance: 22 January 2011

  While is was not a great week for portfolio returns, most of the updated portfolios showed gains in both the Sortino and Retirement Ratios.  Of the seven portfolios available to Platinum readers, five have positive SR and RR values, not a trivial accomplishment.  The Kenilworth is a very young portfolio so a few dollars difference away from the benchmark causes major swings in … [Read More...]

Retirement Analysis: What Must Be Done To Avoid Retirement Poverty

As promised, here is the Quantext Portfolio Planner (QPP) retirement analysis using the Kenilworth Portfolio as an example.  The first screen shot shows the assumptions involved in the analysis.  The second slide is familiar to Platinum readers as it lays out the investments and percentage in each.  The third slide is the scary one as it presents the grim details or the … [Read More...]

400 Level

August “Delta Factor” Risk-Adjusted Portfolio For Interested Investors

What is a "Delta Factor" risk-adjusted portfolio and how is it constructed?  Rather than considering this as a potential portfolio for actual use, view it as an experimental portfolio.  Here are the steps I used to come up with this combination of ETFs. … [Read More...]

Risk-Parity: Is This Portfolio For You?

A Close Look At A Risk-Parity Portfolio* The idea of risk-parity has been around for a number of years, if not by name, certainly by concept.  Risk-Parity is an alternative method of constructing portfolios.  Instead of building a portfolio around allocation of capital the portfolio is emphasis is placed on allocation of risk.  All eleven portfolios tracked here at ITA Wealth … [Read More...]