100 Level

Looking Ahead to 2013

What can ITA readers look forward to in 2013?  My resolutions and recommendations can be found at this link.  As hinted at in several portfolio reviews, I will be rethinking whether to use as many different asset classes as I now do in many portfolios.  The reason for reducing the number of asset classes is tied to correlations.  There is no need to use similar ETFs if the correlations are high.  … [Read More...]

High Yield Retirement Portfolio

A Platinum member submitted the following portfolio for analysis.  The portfolio is designed to throw off income for a retiree and as you can see, the historical yield is a very high 4.6% so the portfolio is meeting that goal.  Take note that the portfolio outperformed the S&P 500 and did it with much lower risk. The projected return over the next six to twelve months is 7.6% or very close … [Read More...]

300 Level

High Yield Retirement Portfolio

A Platinum member submitted the following portfolio for analysis.  The portfolio is designed to throw off income for a retiree and as you can see, the historical yield is a very high 4.6% so the portfolio is meeting that goal.  Take note that the portfolio outperformed the S&P 500 and did it with much lower risk. The projected return over the next six to twelve months is 7.6% or very close … [Read More...]

Newton Portfolio Review

While the Newton is not one of the original ITA Risk Reduction portfolios, I'm planning on moving to the Momentum-Optimization Model with this portfolio as the enhancement of the ITARR model seems to be working well with other portfolios. The following information is not available for publication elsewhere on the Internet. Efficient Frontier:  As the Newton is currently constructed the … [Read More...]

200 Level

Update of Schrodinger Portfolio: 20 January 2012

The Schrodinger Portfolio was scheduled for an update yesterday, but I got caught up in activities surrounding the Madison Portfolio, one of the ITA Risk Reduction portfolios.  Long-time readers know the Schrodinger as the most passively operated portfolio I track.  It is rare we make a trade in this eleven-year portfolio.  Platinum readers can see the asset allocation plan in the … [Read More...]

How Does A Beginning Investor Use The ITARR Model?

When one has been saving and investing as long as I have, it is easy to forget many of the initial steps necessary to launch and manage a portfolio.  In this blog post, I will attempt to fill in a few gaps, and even with this effort, I will most likely miss something.  That is why I appreciate questions.  I am using the Gauss Portfolio as my model for several reasons.  1) It is … [Read More...]

400 Level

Update On ITARR Big Seven ETFs

Most of us using the ITA Risk Reduction model are in the "neglect" period so this information is not all that essential.  For those who are still thinking about using ITARR, all but VTI are now priced below their respective 195-Day EMAs.  Yes, IWN, VEU, VWO, VNQ, IGE, and RWX are all priced below their EMAs.  Some are well below while others are only a tad below. Once … [Read More...]

Suggested Portfolio

A Platinum member sent in the following portfolio for a Quantext Portfolio Planner (QPP) analysis and evaluation.  In the following screen shots, readers will see the tickers, percentages allocated to each, the QPP analysis, and a three-year look at the "Delta Factor" projections.  For the following QPP analysis, I used three years of historical data and assumed the S&P 500 … [Read More...]