100 Level

New Hosting Site

If you are reading this message you have arrived at the new hosting site for ITA Wealth Management. This site should load faster than the old site.  If this is not the case, let me know. To make sure you pick up all the blog entries, be sure to read material from December 17th through December 22nd on the old site at http://lherr.org/ita/   From today on, the latest material will … [Read More...]

Preparing for 2012

Investing 101 Twenty-two days until we merge into January and begin to make errors writing 2011 instead of 2012 when dating a check.  Spend the next three weeks preparing your portfolio for the new year.  Check the broker statement and see which mutual funds, bonds, stocks, or ETFs need to be sold out of the portfolio in order to capture tax losses.  This assumes you have losses, … [Read More...]

300 Level

QPP Analysis of ITA Risk Reduction Portfolio

Prices for all seven equity ETFs used in the ITARR model portfolio are not above their respective 195-Day Exponential Moving Averages (EMAs).  Nevertheless, it is useful to see what a Quantext Portfolio Planner (QPP) analysis looks like if this were the case.  In the first analysis, I use a projected return of 5.3%, which is in line with one of my recent blogs.  Then I show readers … [Read More...]

Passive vs. Active Investing

Why do large endowment funds use a passive investment strategy? Is it due to fund size and their portfolios are so large they mirror the market? Again, quoting from my “Active vs. Passive” paper, we have the following. “An estimated 40% to 50% of all institutional monies are in index or passive portfolios while only 3% to 4% of retail investors make use of passive strategies. … [Read More...]

200 Level

Will An All Equities Portfolio Provide Superior Retirement vs. All Bond Portfolio?

We are trying to answer the assertion that the stock to bond ratio does not make a significant difference when it comes to retirement planning.  Yesterday, I posted two blog entries that dealt with the beginning arguments.  Here is the link to the first entry and the link to the second one where I focused on the all bond portfolio.  In this blog post I will show the results of an … [Read More...]

ITA Asset Allocation Philosophy

Do you ever ask why ITA Wealth Management is such a strong advocate for developing an asset allocation (AA) plan?  While academic studies of the late 1980s placed more importance on asset allocation than more recent studies, there still does not appear to be any portfolio models that outshine broad diversification through asset allocation. Further, complete and in depth studies as to the … [Read More...]

400 Level

“Delta Factor” Projections For Equity ETFs

Several weeks passed since the "Delta Factor" projections were last posted for equity ETFs.  In the following screenshots I show both the projections and what a portfolio would look like were it populated with nearly equal percentages of a wide array of equity ETFs.  First, here is the "Delta Factor" table of projections. … [Read More...]

8 Dividend Stocks Supercharge the Swensen-Six Portfolio

Eight dividend aristocrats added to the "Swensen-Six" Portfolio boost return, increase yield, without doing extensive damage to the portfolio volatility. The following screen-shots show the original "Swensen" portfolio, a supercharged version, the correlation matrix for the supercharged portfolio, and the "Delta Factor" projections for the supercharged portfolio when … [Read More...]