100 Level

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...]

American Workers Unprepared

ITA Wealth Management is not so much a blog of how to make money as it is a blog to help investors achieve retirement goals.  According to recent Department of Labor statistics on retirement sufficiency, U.S. workers retiring in the 2050s will have saved only enough in their 401(k) accounts to replace an average of 22% of their pre-retirement income.  What is staggering is that 37% will have no … [Read More...]

300 Level

Kepler Portfolio Update: 13 August 2012

A few weeks ago I explained the changes that were coming in the Kepler Portfolio.  The following "bloody" Dashboard shows the changes that were put into place.  All the growth asset classes were lowered from 3% to 2%, putting all above target.  The allocation to U.S. Equities was lowered to 30% and those assets helped to increase exposure to domestic real estate.  The … [Read More...]

Highly Selected Stocks

One of my data sources changed their format and the changes eliminated information I use in my "Watch List" spreadsheet.  Unless I am able to find that data, I will need to change the makeup of my "Creme List."  For investors who use a few individual stocks in their portfolios, I will continue to post a list of interesting companies.  It will differ from the old … [Read More...]

200 Level

Risk Reduction Portfolio: A Potential Asset Allocation Plan

Bob Warasila, author of the "New Normal" portfolio, sent me an asset allocation plan that is worth sharing with Platinum members.  This Risk Reduction Portfolio differs slightly from one I recently posted over on Seeking Alpha in that this portfolio has a small exposure to precious metals and it also includes on stock.  In the following three screen shots readers will find the … [Read More...]

Maximizing The Return/Risk Ratio

I spent much of the morning working on optimizing numerous sets of ETFs until I came up with the following array of investments.  This sample portfolio consists of the ETFs used in many ITA portfolios.  Knowing that individual stocks bring diversity to most portfolio, I "Googled" for the five highest yielding dividend aristocrats.  To make sure I have the top five, I would need to confirm with … [Read More...]

400 Level

Asset Allocation: Why Select This Mix of ETFs?

Gauss is the newest portfolio launched (12/27/2011) here at ITA Wealth Management.  While the annualized performance is a respectable 25%, it still lags both the VTSMX and ITA Index benchmarks as it took time to populate all fifteen equity and bond asset classes.  The broad market was in a positive mood during the launch phase and as a result, the portfolio fell behind the … [Read More...]

Maxwell Portfolio Update: 5 July 2012

Examining the Maxwell asset allocation below, we note that developed international and emerging markets are still priced below their respective 195-Day Exponential Moving Averages (EMAs).  We are also below target in commodities as we are waiting on a price rebound.  Exposure to growth stocks is accomplished by holding shares in the blend column. … [Read More...]