100 Level

QPP View of Twenty ETFs

Here is a QPP view of the twenty ETFs mentioned in the prior blog post.  I'll likely optimize these ETFs later.   … [Read More...]

Why The Three Basics ETFs Are Insufficient

VTI, VEU & VWO are insufficient Several days ago I wrote about the three basic asset classes needed in every portfolio.  The three mentioned are: U.S. equities, developed international markets, and emerging markets.  While VTI, VEU, and VWO cover these three asset classes, they are insufficient when putting together an adequate portfolio and here is the analysis showing … [Read More...]

300 Level

Bonds and Income ETFs: Does It Make Sense To Include In Portfolio?

For several years word on the street was that interest rates would rise and bonds would fall in price.  That has not happened and all the "bond Eeyore's" have been wrong, including me.  With interest rates as low as they now are when will we see a turn?  According to the FED, interest rates will remain low so long as unemployment remains high.  That is the current correlation. What is the outlook … [Read More...]

Annualized Future Total Market Return

I've prepared a simple spreadsheet to project the Annualized Future Total Market Return. The equation used to make this calculation comes from John P. Hussman, of Hussman Funds. Use values found in the article to test the accuracy of the spreadsheet. To gain access to the spreadsheet move to the right-hand edge of the page and scroll down to Interesting Sites. Then look for the Market Return … [Read More...]

200 Level

Weekly Portfolio Performance Update: 27 April 2012

The good news is that every portfolio increased in value this week.  The bad news is that all but one portfolio (Maxwell) lost ground relative to the benchmarks.  Two factors played into this scenario.  1) International markets continue to lag the U.S. Equities market.  2) Growth equities are performing better than value and that hurts our portfolios since we skew the Strategic … [Read More...]

Retirement Planning: Using the Kenilworth Portfolio As A Model

Two young portfolios, Gauss and Kenilworth, found here on ITA Wealth Management serve as examples for retirement planning.  For this blog post, I'll use the Kenilworth as the example since it began with a modest initial investment of $1500 followed by monthly contributions.  Platinum members have access to all the transaction details. The first move in any retirement plan is to do … [Read More...]

400 Level

Semi-Variance: The Better Risk Measurement

Photograph: Government buildings in Lisbon, Portugal Updating Sortino and Retirement Ratios Risk Management Users of the TLH spreadsheet will want to update the semi-variance calculation in the SR worksheet after the market closes and all the index data is available.  To make sure you have the latest data, wait until at least three hours after the market closes so all the benchmarks are … [Read More...]

Using “Delta Factor” Analysis for Initial Equities Investments

A common question, if one is holding a large amount of cash, is when to begin putting it to work in the market.  This question came up several times recently with Platinum members who are beginning to lay out a Strategic Asset Allocation (SAA) plan and have selected ETFs they will use to populate the different asset classes.  Arguments can be made to invest all cash immediately since the … [Read More...]