100 Level

Registration Issues

A few Platinum subscribers are having problems accessing the reserved content on this blog and it is likely due to not cleaning up all former subscriptions on PayPal. … [Read More...]

Blog Clues For New Users

If you are new to ITA Wealth Management and are having some difficulty finding your way around the blog, here are a few hints. 1) I just introduced a new Category which you will find in the right sidebar.  Open up the Categories pull-down menu and look for Free Information under Level 100.  Only a few of the free blog posts are identified, but this will get you started. 2) A good way … [Read More...]

300 Level

Schrodinger Portfolio Review: Second Quarter Update

Nearly a month passed since I last updated the Schrodinger Portfolio, a passively managed investment fund.  This portfolio still holds a few ETFs that were purchased approximately ten years ago.  About the only changes in recent months has been the addition of dividends. I'm not too concerned about the three asset classes that are above target. When the political debate on the … [Read More...]

Conservative Portfolio

Below is the QPP analysis of a portfolio suggested by an ITA reader. The portfolio is made up from a wide array of index funds and ETFs.  The projected return of 4.44% immediately indicates this is a conservative portfolio as it is projected to return 2.6% below that projected for the S&P 500.  The projected standard deviation is also low at 8.1%, and the Risk/Volatility ratio at … [Read More...]

200 Level

Passive vs. Active Investment Strategy

Using Morningstar and Yahoo-Finance to compare stocks and ETF performance.* Here is an exercise that will prove informative to investors who construct portfolios using stocks. Follow these instructions. … [Read More...]

Portfolio Performance: 7 January 2012

Of the ten portfolio evaluated a week ago, all showed absolute gains this week.  A new portfolio, Gauss, was add to the list.  Expect the Internal Rate of Return (IRR) values for this new portfolio to be exaggerated for a number of months as that is the nature of the IRR.  Slight performance changes are amplified as these are annualized percentages calculated over only a few … [Read More...]

400 Level

Retirement Ratio – What Is It?

Understanding the Retirement Ratio In each Portfolio Performance data table readers see the column labeled, RR, or Retirement Ratio. Just what is this ratio and how is it calculated? To understand the Retirement Ratio first requires an understanding of the Sortino Ratio (SR) as the Retirement Ratio is a modification of the SR. Mathematically, the Sortino Ratio is expressed as follows. SR = (P - … [Read More...]

“Delta Factor” for Sector Portfolio

What is the "Delta Factor" projecting for the eleven sectors of the market?  Based on recent analysis, the international market is over bought.  Is the same true for the U.S. Equities market? Checking out the data table below, three years of historical data indicate the same over bought condition exists for the U.S. market. … [Read More...]