100 Level

Ivy Portfolio: 5 Asset Classes

Mebane T. Faber and Eric W. Richardson, in their book, "The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets," provide three sample portfolios that attempt to emulate the Portfolio Policies of the top academic endowments in the country.  Special attention is given to Harvard and Yale. This week I will be analyzing the five, ten, and twenty factor … [Read More...]

The Top Five Investment Books On Asset Allocation

Investors interested in digging deeper into the nuances of asset allocation will find the following five books of interest. Here is my revised list of the five best books on asset allocation.  Elsewhere on this blog you will find my Top Ten list of investment books. The Four Pillars of Investing: Lessons for Building a Winning Portfolio - William J. Bernstein Asset Allocation: … [Read More...]

300 Level

Test Portfolios Using Private Equity

This is the first of a series of test portfolios where ITA readers will find a few different ETFs, one being private equity (PSP).  This first portfolios has a standard array of ETFs.  I am using VV as a "pure-play" for large-cap blend.  Normally I do not use this ETF as it is not in TD Ameritrade's stable of commission free ETFs.  JNK is the high yield fixed … [Read More...]

Efficient Frontier for Madison Portfolio

Wednesday of next week is the review date for the Madison Portfolio.  I prefer to take an advanced peek to see where the current asset allocation plan lies on the efficient frontier and compare it with the optimized allocation position. Madison Efficient Frontier:  While it is difficult to see from the EF graph below, ETFs holding down return are:  BND, TIP, TLT, GTU, and DBC.  Holdings in … [Read More...]

200 Level

Einstein Portfolio Review: 19 September 2011

Several portfolios are scheduled for review this week and the Einstein is first on the list.  Platinum members who follow ITA regularly know that I review the portfolios approximately every four to five weeks.  The first thing I do is look at the Dashboard, a worksheet housed within the all important TLH Spreadsheet.  The Dashboard lays out the asset classes and the percentage … [Read More...]

Benjamin Graham and Index Funds

Benjamin Graham is considered by many to be the father of value investing.  For more information on one of his last conversations, go to this site. Interviewer:  Can the average manager of institutional funds obtain better results than the Dow Jones Industrial Average or the Standard & Poor's Index over the years? Graham:  No. In effect, that would mean that the stock … [Read More...]

400 Level

Monthly Review of Gauss Portfolio

Reviewing the Gauss Portfolio this month is a bit different since I made some tactical asset allocation changes.  If you examine the Dashboard (extracted from the TLH Spreadsheet) you will note a few changes.  As a result of the changes, the asset allocation plan appears to be a bit "bloody."  That should change by next month as I have a number of limit orders in place … [Read More...]

Seeking For Low Correlated ETFs

When the market shies away from equities and gravitates toward less volatile securities such as bonds and treasuries, we need access to those ETFs that have a low correlation with holdings such as VTI, VEU, and VWO.  What ETFs do we flee to when the equities market begins to wane.  If included in the ranking worksheet, we can easily identify those ETFs that have the strongest … [Read More...]