100 Level

What Is (Was) The Motivation For ITA Wealth Management?

What is the motivation for writing this blog? Here are a few reasons. I wanted to learn how blogs work, and there seemed no better way than to set one up. Writing this blog required me to dig into academic papers I filed away years ago.  Rereading a number of investment books is a side benefit. I wanted to pass on what I learned from over fifty years of investing. This investing … [Read More...]

A Modest Proposal: “New Normal” Portfolio #2

As a follow up to the earlier post this morning, let me propose another "New Normal" style portfolio. This is a variation of the portfolio Bob W. set up several months ago. Keep in mind that I am using a 3.5% inflation rate and the projected return for the S&P 500 over the next year is 7.3% instead of the Quantext Portfolio Planner (QPP) default projection of 8.3%. Below is a screen … [Read More...]

300 Level

Einstein QPP Analysis: Reducing High Correlated Assets

As promised in the prior post, here is the QPP analysis of the Einstein.  Pay particular attention to the Correlation Matrix as that is the reason for posting this blog.  Note how most of the equity ETFs are highly correlated. … [Read More...]

High Yield Investments Fall Short of Goals

From a discussion on Seeking Alpha, a list of high yield investments were suggested for QPP analysis.  While a number of the suggestions lacked three-years of data, the following seven high yield investments met all the qualifications for analysis.  Below are the projections for this list of tickers.  HYG and JNK are part of many portfolios tracked here at ITA Wealth … [Read More...]

200 Level

Portfolio Performance Data for 21 Portfolios

Portfolio Performance The data table below is incomplete as I am still working through all the dividends thrown off in the second quarter.  As I balance more portfolios with the June 30th statements I will be entering new data.  Be sure to refresh your browser when you land back on this page as new data will likely show up.  Portfolios tracked by Captool will have a 6/30/2011 date … [Read More...]

Active vs. Passive Investing: Part 8

Section Eight of the Active vs. Passive article includes the following criticism of index investors. Some indexers claim superiority by simply dismissing the reported returns of active investors. They claim these investors do not know how to properly measure returns - either on a year's basis, or multi-year basis. But no proof is presented for this position other than personal anecdotes. … [Read More...]

400 Level

Maxwell Portfolio Review: Risk Reduction In Action

With the market closed for Good Friday, we can push the review for the Maxwell up a few hours.  It makes no difference as all the ETFs are still priced above their respective 195-Day Exponential Moving Averages.  VEU escaped a sale by $0.37 so it will come as no surprise if that ETF is not in a sell position when we review the Euclid next round. In the Dashboard below we see that … [Read More...]

Tactical Plan for Maxwell & Euclid Portfolios

As mentioned in an earlier post, I need to set out a plan of action so as to pull the IRR values of both the Maxwell and Euclid portfolios ahead of the IRR for the VTSMX benchmark.  Both portfolios are lagging, in part due to inattention and carrying too much cash.  The follow approach is designed to turn this around. This material is not available for Seeking Alpha. … [Read More...]