100 Level

Grandchildren: Rebalance Portfolio When Necessary

Keep the different asset classes within 25% of the target set up in the Strategic Asset Allocation plan.  In the little book, "The Investment Answer," rebalancing is the fifth critical decision for investors.  In my opinion, rebalancing is one of the minor hints of investing, particularly if new money is coming into the portfolio.  Just keep purchasing ETFs that represent … [Read More...]

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...]

300 Level

Using Treasuries to Reduce Risk

Compare the following portfolio (QPP analysis) with the risk reducing portfolio I suggested last week.  In the following portfolio, I stripped percentages off several equity and REIT ETFs and allocated those assets to a combination of TIP and TLT.  While the projected return is reduced, the projected standard deviation comes down at a faster rate giving one a higher Return/Uncertainty … [Read More...]

QPP Analysis of “Top 17 Stocks”

Selecting the recommended stocks from the 40 securities listed in a prior blog, here is the Quantext Portfolio Planner (QPP) analysis of those 17 stocks.  Included is the Correlation Matrix graph and for good measure, I threw in the "Delta Factor" projections.  Since there were fewer stocks than in the original analysis I was able to show all the correlations. QPP Analysis:  As in the prior QPP … [Read More...]

200 Level

Will I Run Out of Money Using the Ivy 5?

Ivy 5 Portfolio and Retirement Following up on the quantitative approach to managing portfolio uncertainty, I'll update the Ivy 5 portfolio as referenced in Mebane T. Faber and Eric W. Richardson's book, "The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets." [Open up blog entry for book link to work properly.]  On page 75 of their book, Faber and … [Read More...]

Einstein Portfolio Update: 2 January 2012

The following Dashboard shows the asset allocation plan for the Einstein Portfolio.  This worksheet and the following performance slide include all dividends from 2011.  With the available cash, I expect to put all the under-target asset classes in balance within a few weeks.  I have several limit orders in place for the under-target asset classes. … [Read More...]

400 Level

Bullish Percent Indicators Show A Few Changes

Several indexes and one sector showed weakness this week.  Nevertheless, many markets are still reading above 70% or are positioned in the overbought region.  … [Read More...]

Working With The Basic Portfolio

Eventually I plan to move more of the ITA portfolios toward the following 20 ETFs.  In some portfolios I need to broaden the diversification and in others I need to reduce the number of securities in an effort to simplify.  Reducing cost is another motivation as all but two of the following ETFs can be purchased free if one is a TD Ameritrade client.  The two exceptions are GTU and VHT.  In this … [Read More...]