100 Level

Second Grader’s Index Portfolio

Second Grader Portfolio About a year ago, Allan S. Roth, financial adviser, wrote a book I referenced in my last bog post. Roth helped his son, Kevin, set up this basic portfolio when Kevin was a second grader. I think he is now a fifth or sixth grader. The "second grader" portfolio is a three asset class portfolio or about as simple as it gets. The three asset classes are: U.S. … [Read More...]

The Trend is Our Friend: Risk Parity, Momentum and Trend Following

A few days ago I ran into an article Platinum members may find interesting.  There are some possible underlying benefits to applying the "Delta Factor" and the Bullish Percent Indicator.  You will need to download this article from Mebane Faber's site as I did not find it available as a stand along article.  I'll provide the best path I could find. … [Read More...]

300 Level

Newton Portfolio Review: 6 October 2011

While it is a little early to update the Newton Portfolio, shares of NLY were purchased and shares of SDS were sold this week.  Those changes did little to change the asset allocation as shown in the Dashboard worksheet below. … [Read More...]

Madison Portfolio Review: 6 May 2013

Of the eleven portfolios tracked here at ITA, detailed transactions of three (Maxwell, Euclid, and Madison) are not available to Platinum members.  The portfolio up for review today is one of the restricted portfolios.  Therefore, the information for this review is somewhat limited.  Nevertheless, we begin with the Efficient Frontier and Dashboard as is our custom when updating a … [Read More...]

200 Level

Index vs. Passive Investing

Harold R. Evensky, in his Wealth Management: The Financial Advisor's Guide to Investing and Managing Client Assets book, makes a distinction between index and passive investing.  The distinctions can be found at this location.  Few readers are unaware of the differences between active and passive management, but the subtle definitions between index and passive management deserves some … [Read More...]

Asset Allocation: The Basic 17 Asset Classes

Much is made of the importance of asset allocation here at ITA Wealth Management.  Not all portfolios tracked on this blog use the seventeen asset classes, but we want to list the stable of assets we draw from depending on the size of the portfolio and goals of the investor.  Cash is included as one of the 17 in the data table shown below. Below the title row we have the three cap sizes ranging … [Read More...]

400 Level

Euclid Portfolio Review

Another month rolled around and it is once more time to check in on the Euclid, one of the five ITA Risk Reduction model portfolios.  As mentioned in a comment earlier this week, DBC, VEU and VWO are priced below their 195-Day EMAs unless something drastic happens after I have this blog post written.  … [Read More...]

Staying On The Right Side Of The Market With A Ten ETF Portfolio

Remaining on the right side of the market is critical to reducing portfolio risk.  Platinum members should be well aware of the ITA Risk Reduction model, our first line of defense.  Remember Faber's axiom that ETFs are more volatile when they are priced below the 200-Day Simple Moving Average.  Here at ITA we use a faster EMA, but the difference is not significant and the … [Read More...]