100 Level

Kiva Loans

To provide capital to less fortunate individuals wishing to start or maintain their business, I participate in Kiva.  Profits from ITA Wealth Management go into this needy program and thus far 55 loans in 24 countries are at work.  To learn more about Kiva, go to this address.  Before MEDA Trust closed down due to lack of contributions, I was part of that program as was at least one other Platinum … [Read More...]

Stock Market Myths

Brett Arends writes an interesting article, "Ten Stock-Market Myths That Just Won't Die" for the Wall Street Journal Digital Network.  While I agree with nearly all of his ten points, there are a few that need further clarification.  Point #8 focuses on diversification using mutual funds.  I agree with that part of the point, but not the section quoted … [Read More...]

300 Level

Risk Adjusted vs. Capitalization Asset Allocation Portfolio Construction

Is it better to construct a portfolio based on allocating assets around capitalization divisions or is one better off using a risk adjusted platform?  The following two screen shots show the details of these two approaches to portfolio construction.  In each case I am using ten ETFs that provide worldwide diversity.  Four years of historical data goes into the following Quantext … [Read More...]

Einstein QPP Analysis: Reducing High Correlated Assets

As promised in the prior post, here is the QPP analysis of the Einstein.  Pay particular attention to the Correlation Matrix as that is the reason for posting this blog.  Note how most of the equity ETFs are highly correlated. … [Read More...]

200 Level

Retirement Portfolio: What Are The Essential Asset Classes To Include?

A request came in from an ITA reader to put together a retirement portfolio that does not need to produce income since social security and a pension will cover those needs.  In other words, what should the retirement portfolio plan look like?  The first guideline is that this portfolio not include any individual stocks as that lays on an additional level of analysis.  I suspect most investors who … [Read More...]

Active vs. Passive Investing: Part 6

Section Six of the Active vs. Passive Investing paper includes a number of salient points.  The author begins his argument with this position. "The academic research seems to avoid addressing this issue head on.  There are always very good reasons to disregard their conclusions due to methodology.  One really objectionable practice is to pretend to be measuring … [Read More...]

400 Level

Retirement Ratio

While on vacation I spent time thinking what I would call the risk ratio I am now using to see if the portfolio meets the Return/Risk requirement. This ratio was called the ITA Ratio but that did not convey any useful information.  I considered the title to be a temporary place holder until I came up with something more expressive. The ITA Ratio will now be known as the Retirement Ratio as it … [Read More...]

Kenilworth Portfolio Review: 21 February 2012

While it is a few days early to update the Kenilworth Portfolio, based on the current ETF prices and their respective 195-Day EMAs, nothing is likely to happen over the next few weeks let alone the next three days.  Here is the link to the StockCharts graphs we use for the ITA Risk Reduction model.  The following two screen shots show the Dashboard and Portfolio Performance data for the … [Read More...]