100 Level

ITA Portfolio Performance Data Sheet: 16 November 2012

While all portfolios declined in value over the past two weeks, the good news is that every portfolio, without exception, gained ground on both the ITA Index and VTSMX benchmarks.  Yes, you read correctly.  Every portfolio picked up basis points on both critical benchmarks. While none of these accounts are particularly set up as defensive portfolios, all reacted this way as none declined as … [Read More...]

Gauss Portfolio Update: 11 October 2012

Photograph:  St. Louis Arch captured by Lowell Herr Next up for review is the Gauss Portfolio.  Since this is a smaller portfolio I do not use any of the growth ETFs.  Instead, I capture growth through the use of several blend asset classes.  As the portfolio grows I may open up the growth asset classes, although it hardly seems necessary since all the U.S. Equity asset … [Read More...]

300 Level

Portfolio Rebalancing: Essential or Overrated

Portfolio rebalancing is as old as asset allocation and it is one of the cardinal rules of portfolio management.  It is an action or discipline used by money managers to keep the percentages of the various asset class within stated target limits.  Rebalancing policies assure the investor that the portfolio continues to be well diversified.  If one never rebalances the market will … [Read More...]

Sample Portfolio For The Mosaic Investor

Investors who use a few individual stock will be interested in the following portfolio suggested by a reader.  By Mosaic, I mean an investor who uses an array of index ETFs (or index funds) and then sprinkles in some individual stocks. QPP Analysis of Suggested Portfolio:  In this analysis the S&P 500 is assumed to grow at an annual rate of 7.0% so this portfolio is projected to outperform … [Read More...]

200 Level

ITA Portfolio Performance: 26 May 2012

While the individual portfolios increased in value this week, nearly all lost ground with respect to both the ITA Index and VTSMX benchmarks.  That is to be expected any time the market moves up considering that many of the portfolios are out of a number of asset classes and in cash or other income generating instruments.  Portfolios such as the Curie, Newton, Schrodinger, Einstein and … [Read More...]

What Are The Disadvantages of Index Funds?

This morning I noticed a reader was searching for disadvantages associated with index funds, so I decided to do a little internet searching to find some of the drawbacks, if any.  As soon as one delves into this question, up pops the issue of passive vs. active investing.  Here are a few resources I located that deal with the question - are there disadvantages to using index funds?  I include … [Read More...]

400 Level

Bond “Delta Factor” Summary

As promised, below is a screen shot of a "Delta Factor" data table for AGG, BIV, BSV, HYG, JNK, IEF, TLT, and TIP.  The reference bond ETF I use in this analysis is BND.  I've done almost no testing with bonds so I don't know the quality of the predictive powers when it comes to bonds. … [Read More...]

ITARR Style Portfolios: What Next?

Now that we are near the end of the month, what are the plans for the Maxwell, Euclid, and Madison portfolios?  A price check this morning show all seven basic ETFs are well under their 195-Day EMAs.  Should this continue until November 30th, and I expect that to be the case, we will not make any changes in these three portfolios even though we do hold partial positions in VTI, IWN, IGE, … [Read More...]