100 Level

Rebalancing Portfolio: Blending Dashboard and Optimizer

Now that an optimizing tool is available, how does one rebalance a portfolio by combining the output of an optimizer with the Dashboard guidelines?  The larger topic is one of asset allocation so I will start with the following Dashboard that defines an asset allocation plan. Dashboard:  Assume the following Dashboard lays out the Strategic Asset Allocation plan for a portfolio.  Only pay … [Read More...]

What Is (Was) The Motivation For ITA Wealth Management?

What is the motivation for writing this blog? Here are a few reasons. I wanted to learn how blogs work, and there seemed no better way than to set one up. Writing this blog required me to dig into academic papers I filed away years ago.  Rereading a number of investment books is a side benefit. I wanted to pass on what I learned from over fifty years of investing. This investing … [Read More...]

300 Level

Preservation of Principle

Tactical Asset Allocation for Newton Portfolio Holding on to the nest egg were my marching orders.  I did not stand in the way of these instructions for the Newton Portfolio.  With the market climbing as it has since early 2009, moving into cash makes some sense.  In an attempt to preserve capital, numerous trades took place in March and early April.  Selling off some asset … [Read More...]

Portfolio Review of the Kepler: 23 September 2011

The Kepler Portfolio was launched near the end of the last major bear market and is therefore a relatively new portfolio.  Even so, it is fully funded with small contributions added each month.  Platinum members have access to the spreadsheet upon request.  As usual, we begin with a look at the Dashboard, the worksheet that is found inside the TLH Spreadsheet. … [Read More...]

200 Level

Portfolio Development: Thinking Through First Steps

Several readers have been asking for advice as to which portfolio to follow and is there any philosophy behind the different portfolios?  The portfolios are owned by many different individuals so the portfolios are designed with those investors in mind.  I have had a major role in the Strategic Asset Allocation (SAA) plans of each.  Individual investors differ in their income and … [Read More...]

A Lesson from Gauss

Carl Gauss is considered by some as the most brilliant mathematician who ever lived.  He is sometimes called called the "Prince of Mathematicians."  I even named one of my computers after him.  One of his contributions is the Gaussian Distribution where real valued random variables tend to cluster around a single mean variable.  Does that sound like prices dancing … [Read More...]

400 Level

Gauss Portfolio Review: Efficient Frontier, Rankings, and Decisions

Thirty-three days rolled by and it is once more time to update the Gauss Portfolio.  Remember, this is one of the risk reduction model portfolios. Efficient Frontier:  Recent buy and sell adjustments moved the current portfolio (diamond dot) much closer to the optimized portfolio (red dot on EF curve).  In fact they are almost one and the same.  Platinum members can do a search of Gauss to see … [Read More...]


Portfolio Risk Risk is a messy word as it carries so many different meanings in the investing world. Here are at least three meanings of the term. 1. Committee members giving oversight to an endowment fund may define risk as follows. Will the endowment fund grow sufficiently to best inflation, grow a little, and still be able to throw off 5% to find their institution? That is asking a lot of a … [Read More...]