100 Level

Ivy Portfolio: 5 Asset Classes

Mebane T. Faber and Eric W. Richardson, in their book, "The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets," provide three sample portfolios that attempt to emulate the Portfolio Policies of the top academic endowments in the country.  Special attention is given to Harvard and Yale. This week I will be analyzing the five, ten, and twenty factor … [Read More...]

Retirement: Five Asset Class Portfolio

  Five Asset Class Retirement Portfolio If you think many of the portfolios discussed on this blog are overly complicated, try this five asset class portfolio on for size and see if it meets your needs. This portfolio is only slightly more complicated than the "Second Grader" portfolio Allan S. Roth writes about in his book, "How a Second Grader Beats Wall Street." I thought I'd written a … [Read More...]

300 Level

Preparation for Kepler Review

Next week the Kepler is up for review and the following information is in preparation for that update.  I want to know where the current portfolio is positioned with respect to an optimized portfolio and what additions or subtractions are necessary to push the current asset allocation toward the optimized asset allocation.  To examine past data on the Kepler, simply do a search for the portfolio.  … [Read More...]

Schrodinger Portfolio Review: 2 September 2011

The Schrodinger was not scheduled for an update for a few weeks, but it has been some time since I last reported on this passively managed portfolio.  This portfolio is operated in contrast to what I plan for the Maxwell and Euclid portfolios.  Little attention is paid to the Schrodinger other than keeping the asset class close or in balance with the target percentages.  Otherwise, … [Read More...]

200 Level

Advantages to Mosaic Investing

It comes as no surprise to long standing Platinum members that most equity ETFs are highly correlated.  The basic ones we use to populate many of our portfolios show correlations of 80% or higher when analyzed using the Quantext Portfolio Planner (QPP) software.  To reduce portfolio volatility and increase the Diversification Metric (DM) we have several choices.  One common approach … [Read More...]

QPP Analysis of Swensen-Faber Merged Portfolio

Merging ideas from the "Swensen Six" and "Faber Ten" portfolios has the potential to generate a wide array of asset allocation plans.  In the following example I am sticking with the general percentages allocated to the broad asset classes, as recommended by David Swensen, but you will see that I am adding asset classes as suggested in the "Faber Ten" portfolio. … [Read More...]

400 Level

Bullish Percent Indicators: Four Switch Positions

Bullish Percent Indicator (BPI) information is a relatively new addition here at ITA Wealth Management.  It is another investment arrow we are including in our investment quiver.  A major change I made this week is to move from an arithmetic measurement of the box size to a log or percentage scale for calculating the box size.  Just as it makes sense to calculate portfolio increases … [Read More...]

International ETFs: Are There Any Potential Buys?

Two days ago I ran an analysis on domestic ETFs to see if there were any buying opportunities.  The following is a similar Quantext Portfolio Planner (QPP) analysis of international ETFs.  As readers will see in the "Delta Factor" projection table, there are a few buying opportunities. … [Read More...]