100 Level

Worry Free Investing: Young Readers – Listen Up!

No, I am not obsessed with risk even though I've recently written quite a bit on the subject.  Why the concern about risk as the market seems to be having a good summer?  The specter of rising interest is a major fear for this reason.  If interest rates were to rise to the same level they were when George Bush (43) took office, the amount of money the U.S. Government will need … [Read More...]

Stress Testing the 10 ETF Portfolio

A Seeking Alpha reader showed interest in the 10-ETF Portfolio and asked how such a portfolio might stand up under a stress test as I applied to another portfolio. Before running such an analysis, one needs to understand the assumptions.  For this analysis I assume the investor is 45 years old, has saved $250,000, saves $12,000 per year, and will retire on $50,000 per year upon retirement in … [Read More...]

300 Level

Is It Worth 50 Basis Points? Part III

Example three in this series uses the last three years of data for the return and volatility projections.  As in the last two blog posts, not much changes. The projected Return/Uncertainty ratio remains at 0.49.  Part of the reason for little change is that 40% of this portfolio is made up of bond and income assets and they tend to dominate the portfolio.  Tamping down volatility is … [Read More...]

QPP Analysis of Current Schrodinger Asset Allocation: Part 2

Using the percentages allocated to the current holdings in the Schrodinger Portfolio, we have the following Quantext Portfolio Planner (QPP) analysis.  The current asset allocation plan both meets and misses our goals when it comes to setting up a portfolio.  As usual, the S&P 500 is assumed to grow at 7.0% annually.  This assumption is critical as it has a direct bearing on the projected … [Read More...]

200 Level

Portfolio Performance: 12 August 2011

Asset Allocation wins again.  The following data table is what ITA Wealth Management is all about.  It is about setting up a Strategic Asset Allocation plan, following through with a passive style of investing, and monitoring the results to see how well the portfolios compares with their benchmarks. While few folks expected to see absolute gains over the last week to ten days, in such … [Read More...]

Portfolio Performance: 24 December 2010

Portfolio Performance Data Table With the market closed today, this portfolio table is coming out earlier than normal.  The following data shows the updated information for the seven portfolios tracked by Platinum readers, plus the Madison, Euclid, and Maxwell portfolios. A few of the portfolios gained ground on both the ITA Index and VTSMX benchmarks. Overall, the changes were … [Read More...]

400 Level

Condition of Risk Reduction ETFs

ETFs used in the ITA Risk Reduction model experiment include the following "critical" eight:  VTI, IWN, VEU, VWO, VNQ, RWX, DBC, and PCY.  If the market closes this afternoon close to where it is now, only DBC will reside below its 195-Day Exponential Moving Average (EMA).  VEU and VWO, both international ETFs, are hanging above the cross-over point by pennies.  We … [Read More...]

Madison Portfolio Review Time

One of the five portfolios using the ITA Risk Reduction model is the Madison.  In preparation for the review we first look at the Dashboard to see if the asset classes are populated properly.  While there are a few out-of-balance classes, the percentages are nothing to worry about.  Most of the asset class are within the 25% Threshold range.  Not only are all eight critical … [Read More...]