100 Level

Asset Allocation

Strategic Asset Allocation The backbone of any investment plan is its asset allocation. So says Richard Ferri in his recent book, "The Power of Passive Investing." Search of this topic on ITA Wealth Management and you will see I agree. There are two parts to developing an asset allocation strategy. First, one must decide how many and what asset classes to include in a portfolio. That … [Read More...]

Water ETFs

Water ETFs for Portfolio Diversification Portfolios constructed and monitored here on the ITA Wealth Management blog focus on broad asset classes.  We use ETFs such as VTV, VOE, VBR, VEU, VWO, VNQ, etc. as our primary portfolio building blocks.  On occasion we add individual stocks or ETFs that are out of our "mainstream" group of ETFs.  One area we branch into is … [Read More...]

300 Level

AAII ETF Portfolio Analysis

In the November 2011 issue of the AAII Journal is a Model ETF Portfolio.  I've been a member of the American Association of Individual Investors (AAII) since the mid-1970s and it is a great organization.  In each publication, I generally find one or two articles of interest.  Anytime I see a sample portfolio I like to run an analysis to see what the QPP is telling me.  … [Read More...]

Return/Risk Optimization of Harry Browne’s “Permanent Portfolio”

The "Permanent Portfolio" developed by Harry Brown leaves quite a bit to be desired when one optimizes for the highest Return/Risk ratio.  The four ETFs selected for stocks, bonds, gold, and cash are VTI, BIV, GTU, and SHY respectively.  There are other choices to represent these asset classes, but these four are the ones I selected for this analysis. … [Read More...]

200 Level

Portfolio Performance: 25 November 2011

The weekly performance data is presented in the table below.  While it was another down week on an absolute scale, most of the portfolios performed rather well.  Only the Einstein lost ground with respect to the VTSMX benchmark.  Those holding even were the Schrodinger, Kepler, and Bohr.  Portfolios that picked up at least a tenth of a percentage point on the VTSMX were the … [Read More...]

Risk Reduction Portfolio: A Potential Asset Allocation Plan

Bob Warasila, author of the "New Normal" portfolio, sent me an asset allocation plan that is worth sharing with Platinum members.  This Risk Reduction Portfolio differs slightly from one I recently posted over on Seeking Alpha in that this portfolio has a small exposure to precious metals and it also includes on stock.  In the following three screen shots readers will find the … [Read More...]

400 Level

“New Normal” Portfolio Revised

Photograph:  Cape Mears Lighthouse.  This is the lighthouse that was shot up by vandals a few years ago.  Although repairs were made, the lighthouse will never be the same as Fresnel lenses of this size and quality of glass are irreplaceable. The creator of the "New Normal" portfolio sent me the latest holdings so here is the revised Quantext Portfolio Planner (QPP) … [Read More...]

Bullish Percent Indicators: 1 February 2013

While several sectors showed some weakness this week, our primary index (NYSE) moved up slightly.  The data tables are shown below. The following material is not available for publication elsewhere on the Internet. … [Read More...]