100 Level

Respighi’s “Pines of Rome”

While I recommended Ottorino Respighi's "Pines of Rome" back on August 29, 2010, it did not receive much attention at that time as it was a secondary selection.  This week I am making it my first selection, and as I wrote back in 2010, this is a must for any classical collection.  Here is one "Amazon" review that should further spark your interest in this piece of music. "Ever since Toscanini's … [Read More...]

Beat The Market

How many times have you heard the phrase, "Beat The Market?" Over a year ago, Mark Hulbert wrote an article on this subject. Here is an important quote from the Hulbert article. If you don't know who Mark Hulbert is, Google his name and learn about his contributions to the field of investing. "Even that, however, underestimates the difficulties of beating an index fund. … [Read More...]

300 Level

12-ETF Portfolio: Another Look

A Basic Portfolio Simplicity, when it comes to design, is an admirable feature and the 12-ETF Portfolio embodies this characteristic.  In addition, the projected numbers are quite respectable as readers can see from the following QPP analysis.  When designing or constructing a portfolio specific goals are set, although it is more difficult to attain those goals when the market is priced … [Read More...]

“Delta Factor” Projections Merit Caution

This morning I ran into the following article, "Billionaires Dumping Stocks."  Heavy hitters, including Buffett, are shedding U.S. Equity stocks.  After reading this article I thought it prudent to run a "Delta Factor" analysis on a basic portfolio of 20 ETFs.  Platinum readers will find the QPP analysis below and the "Delta Factor" projections for 13 equity and seven bond ETFs. … [Read More...]

200 Level

Asset Allocation Performance Data

Portfolio Performance Below is the performance data table for the portfolios tracked here at ITA Wealth Management. If the percentages seem exaggerated, note the launch time as young portfolios will show unusual results. Over time the higher percentages will begin to migrate toward values of the VTSMX benchmark. Readers should pay attention to the Sortino Ratio (SR) and Retirement Ratio (RR) as … [Read More...]

Portfolio Construction the ITA Way

David Swensen writes in his "Unconventional Success" book, "Construction of a financial-asset portfolio involves full measures of science and art.  The science encompasses the application of basic investment principles to the problem of combining core asset classes in an efficient, cost-effective manner.  The art concerns the use of common-sense judgment in the challenge of incorporating … [Read More...]

400 Level

How Important Is Portfolio Risk or Portfolio Uncertainty?

The Importance of Managing Portfolio Uncertainty If 2008 taught us one lesson it is that portfolio risk is just as important as portfolio return. In the following analysis I want to examine some of the risk details of the Passive Portfolio (PP) or the Schrodinger Portfolio. At the end of 2007, this portfolio had a value of $234,160 and by the end of 2008, one year later, the value dropped to … [Read More...]

Bullish Percent Indicators Are Not Calling For a Panic

Regardless of the "fiscal cliff" problems, the Bullish Percent Indicators for both the broad indexes and individual sectors are not showing any signs of a panic or sell-off.  There are even pockets of strength as Platinum members will see in the following slides. The following material is not available for publication elsewhere on the Internet. … [Read More...]