100 Level

15-Stock Diversification Myth

Diversification Myth Debunked   How many stocks does it take to eliminate portfolio risk?  The number 12 to 15 often crops up.  If that is too few, then maybe 20 to 30 will do.  This number has also come under fire, particularly in a world economy where U.S. companies no longer make up the majority of available companies and our economy is shrinking as a percentage of the … [Read More...]

Delta Factor After 400 Point Drop

ITA Wealth Management readers likely want to know what the Delta and Delta Factor projections are indicating after the 400 point drop yesterday.  The buying trend has started, although we still could be early in the cycle.  The reason I think we may be early is that it is not unusual for the Delta Factor to make projections a few months early.  Two time ranges are shown in the … [Read More...]

300 Level

New Normal Portfolio Revisited

Nearly two years ago, the New Normal Portfolio was launched by one of the ITA clients.  If you have been reading the comments, you know this is a defensive oriented portfolio.  Below is the latest QPP data on the NN.  The projected Return/Uncertainty (or Risk) is 0.57.  As I recall, when this portfolio was established two years ago, the ratio was well above 0.60.  The … [Read More...]

Kepler Portfolio Review: 15 February 2013

Normally, portfolio reviews are spread out over the month, but I got behind while on vacation so that is the reason for the second update today.  As with the Curie, I will show the current Dashboard or asset allocation plan.  Then I will present the optimization plan including all the constraints.  First the current condition of the Kepler. … [Read More...]

200 Level

Portfolio Performance Data: 18 November 2011

The following data table speaks to what ITA Wealth Management is all about.  The performance of the 21 portfolios comes from live and operating portfolios.  None are virtual or fictitious portfolios.  Platinum members have access to all the transactions for eight (8) of the portfolios tracked using the TLH Spreadsheet. These portfolios belong to a variety of individuals and I have … [Read More...]

Portfolio Performance Update: 29 March 2013

Nearly a month passed since the last portfolio performance update.  Most of the portfolios did not change more than 10 to 20 basis points since the last update.  The VTSMX benchmark continued to move up leaving behind the performance of every portfolio.  In other words, diversification continues to be a negative when one is comparing portfolio performance with the VTSMX or total U.S. Equities … [Read More...]

400 Level

Delta Factor of International ETFs

Readers interested in equity and bond "Delta Factor" projections will find the following international "Delta Factor" data table of interest.  For this set of ETFs, the reference or standard upon which the results are tested is the international iShares, EFA. I used three years of data to reduce the number of "short records."  Only the two Indonesia ETFs … [Read More...]

Bullish Percent Indicators: 14 September 2012

What a great week for investors!  The Bullish Percent Indicators reflect the strong market, as one might expect.  The question now facing us is, how do we protect profits and can we look forward to a 10% correction?  The negative can wait.  Let's enjoy the week and focus on the positive results. … [Read More...]