100 Level

Risk Management of Portfolio

Will your portfolio survive a three sigma event that is likely to happen over the next ten years?  Check out this link to see a sample analysis. … [Read More...]

We All Love Ennio Morricone

The CD recommendation for the week is Soundtrack music from the "We All Love Ennio Morricone" recording. My recording has a few glitches so it is anything but perfect. If you are not familiar with Morricone, this is a good introduction.  Read the Amazon reviews as they are, in general, quite accurate. … [Read More...]

300 Level

Portfolio Performance – 1 October 2010

TDAmeritrade came out with the September statements this afternoon so I was able to update many of the portfolios in greater detail that expected. In nearly every case, we made progress either by gaining on the benchmarks or reducing portfolio risk. Only in the case of the Schrodinger Portfolio, where we switched to the ITA Index benchmark for our SR and RR calculations, did we see significant … [Read More...]

Portfolio Management

Developing Portfolio Policy Portfolio management begins with a well considered Portfolio Policy. Basic portfolio plans include the following: Asset classes to include in the portfolio Percentage to invest in each asset class Investments to populate asset classes Portfolio monitoring method Projected return analysis Projected risk analysis Selection of appropriate … [Read More...]

200 Level

Annuities: Are They For You?

To read this article over on Seeking Alpha, go to this site.  There are links available you will not find in the posting below. … [Read More...]

Optimizing a Basic Portfolio: 3 and 5 Year Analysis

The sample portfolio shown below consists of 16 ETFs that cover all major markets found in the eleven portfolios tracked here at ITA Wealth Management.  VTI covers all of the "Big Nine" asset classes.  We add VIG for added dividends and IWN for any possible push toward small-cap value, or where Fama and French find added alpha. VEU is our developed international market and VWO is the ETF used … [Read More...]

400 Level

International ETFs and The Delta Factor

This morning I located the following article, Why I Am Buying The Pain In Spain, on Seeking Alpha, one of the top blog sites on the Internet.  In the article, author Cam Hui states his belief in mean-reversion, the exact philosophy that is the foundation of my "Delta Factor" calculations.  Using Hui's article as a backdrop, I decided to run the Delta Factor numbers on the … [Read More...]

Bullish Percent Indicator

Regardless whether it is an index or sector Bullish Percent Indicator, nearly every section of the market saw a decline this past week.  The Dow Jones Industrial Average (DJIA) joined the defensive teams, just another indicator the U.S. Equities market is weakening.  All indexes except for the NASDAQ are still hovering in the over-bought zone (70% or above) and we know this is unlikely to … [Read More...]