100 Level

Passive Management: The Six Step Process

The following six steps provide investors with an outline for organizing and monitoring a portfolio.  Specific details of implementing these guidelines can be found by tracking one of the ITA Portfolios. 1.  Determine the portfolio objectives.  Consider the following as possible reasons for constructing the portfolio. Is this a retirement portfolio? Is it a higher education … [Read More...]

Environmental, Social and Corportate Governance Performance Results

Socially Responsible Investing or what is now commonly called Environmental, Social, and Corporate Governance (ESG) was recently discussed over on Seeking Alpha.  Pure logic tells us that any time one applies any type of screen to investments it will have a negative impact on performance.  Is this true, and if so, what is the impact?  While these results are not intended to be a … [Read More...]

300 Level

Gauss Portfolio Update: 29 May 2012

With the market rebounding, portfolios such as the Gauss are taking a relative hit as we are on the sidelines with a number of asset classes.  In today's market we want to be fully invested in equities, particularly international equities.  I did manage to sell shares of VWO near the high of the day, so that is a plus.  The reason for selling is that VWO is still well below its … [Read More...]

Sample Portfolio Optimized

The following screenshots show the optimization analysis of the submitted sample portfolio.  First I show the Efficient Frontier graph, followed by the ranking order of the holdings, and finally the Buy-Hold-Sell data sheet. Efficient Frontier:  Since I did not have the exact number of shares for each holding, I estimated the approximate percentage.  The current portfolio lies very close to the … [Read More...]

200 Level

Running Out of Money In Retirement

A few months ago I posted a blog entry about the probability of running out of money in retirement. What I did not do in that entry was run a stress test on a portfolio to examine what might happen should a retired investor experience another three standard deviation dip as we came through in 2008 and early 2009.  Later today I plan to take either the Schrodinger or Curie Portfolios as the … [Read More...]

ITA Wealth Management Portfolios Update

Exactly one month passed since I last posted the portfolio performance data table.  All portfolios showed an increase in absolute value.  The gain or loss compared to the two critical benchmarks is mixed.  Portfolios that gained with respect to the ITA Index were the following:  Bohr, Madison, and Gauss.  There was no change in the Curie, Newton, Einstein, and Kenilworth portfolios.  The … [Read More...]

400 Level

Is It Time To Hedge This Market?

Hedging or shorting the market is a high risk game and I'm not about to tell anyone what to do.  Shorting is the ultimate in market timing, and most of us know the pitfalls associated with such activities.  Having waved those red warning flags, let's take a look at the data.  As I mentioned in a recent comment, investors are in a quandary when it comes to holding down portfolio volatility.  To … [Read More...]

Market Watchers Pay Attention

Technical Analysis: StockChart Graphs ITA Wealth Management readers know I am not a market timer.  Nevertheless, one should not be oblivious to market movements, particularly when cash is sitting on the sideline.  When is a good time to start investing that cash?  Possible technical signals are shown below.  As I update my "Watch List" I will post the percentages of … [Read More...]