100 Level

The Simple Six Swensen Portfolio

Amid all the discussion of various technical indicators resides a simple six-asset portfolio advocated by David Swensen.  The six asset classes are: U.S. Equities, Developed International Markets, Emerging Markets, REITs, Treasury Bonds, and Treasury Inflation-Protected Securities.  That's it.  Six ETFs will provide global coverage. The following slide shows the Quantext … [Read More...]

Risk-Parity: A Brief Explanation of How Risky a 60/40 Portfolio Really Is

While I have a sample Risk-Parity portfolio coming out early tomorrow morning, I want to rush out a brief description of how risk is calculated.  This not for the mathematically squeamish, but the concept is not difficult if one can get past one step in the logic.  Don't be surprised if this concept does not alter how portfolios are put together here at ITA Wealth Management.  … [Read More...]

300 Level

Momentum-Optimization Analysis of Aggressive Portfolio

This blog post is a follow-up analysis of the QPP analysis published less than two hours ago.  What I've done is to take the same set of ETFs, but this time I optimized the portfolio to come up with a different strategic asset allocation plan. Efficient Frontier:  The current portfolio (diamond dot) lands smack on top of the optimized portfolio or so close one can barely (blue dot) distinguish … [Read More...]

How Well Did The Beginner’s Portfolio Perform?

This weekend I posted an article over on Seeking Alpha on a Beginner's Portfolio.  One comment got me to thinking - how well did this optimized portfolio perform over the last five years, the time frame I used for the SA article.?  I considered this to be a beginner's portfolio in the sense that it holds only 10 ETFs and it is not all that sophisticated or complicated.  My personal preference is … [Read More...]

200 Level

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...]

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...]

400 Level

8 Dividend Stocks Supercharge the Swensen-Six Portfolio

Eight dividend aristocrats added to the "Swensen-Six" Portfolio boost return, increase yield, without doing extensive damage to the portfolio volatility. The following screen-shots show the original "Swensen" portfolio, a supercharged version, the correlation matrix for the supercharged portfolio, and the "Delta Factor" projections for the supercharged portfolio when … [Read More...]

Euclid Portfolio Review: 13 April 2012

Tomorrow I will take a careful look at the relative positions between the prices of the eight critical ETFs and their respective 195-Day EMAs.  Here is the current Dashboard for the Euclid and if any sales are required, an update of the Dashboard will be posted next week. … [Read More...]