100 Level

Investing Road Map

Searching for useful investing information is an ongoing task and yesterday I found something of use for every reader of ITA Wealth Management. Paul King has written a 50-page online investment book that is available to download if you will go to the right-hand edge of this page and look for Interesting Sites. Seek out the Investing Road Map link to download the PDF file. You will need to know … [Read More...]

Sample Portfolio Requested By Platinum Member

The following set of tickers and percentages were sent to me for analysis.  I used five years of historical data and set, as I generally do, a 7.0% return projection for the S&P 500.  I used TIP (1.0%) for the cash holding.  That choice has little impact on the final projections.    Below is the analysis data.  Instead of me writing up my observations, I'll … [Read More...]

300 Level

Protecting the Corpus of the Portfolio

While I am not a strong advocate for guessing possible market directions, neither do I want to be a patsy and allow hard earned gains slip away as they did twice in the last ten years.  Protecting the corpus (a principal or capital sum as opposed to income or interest) of the portfolio is not to be neglected when it comes to managing assets.  The ITA Risk Reduction model is designed to … [Read More...]

Asset Allocation: Medium-High Risk Portfolio

This is the fourth portfolio in this series of relative risk allocation plans based on the data table found in this blog entry.  Note how the projected return is rising, but so is the projected uncertainty.  Return and Risk are highly correlated.  It is difficult to find a combinations of tickers that will increase the projected return while driving down the projected standard … [Read More...]

200 Level

ITA Wealth Management Portfolios Update

Exactly one month passed since I last posted the portfolio performance data table.  All portfolios showed an increase in absolute value.  The gain or loss compared to the two critical benchmarks is mixed.  Portfolios that gained with respect to the ITA Index were the following:  Bohr, Madison, and Gauss.  There was no change in the Curie, Newton, Einstein, and Kenilworth portfolios.  The … [Read More...]

Risk-Parity Portfolio: What Is It And What Does A Risk Portfolio Look Like?

Reducing Risk Through Risk-Parity Risk-Parity: Have you heard of the term or seen reference to this style of portfolio construction?  Join the crowd if this is new to you, even though the Risk-Parity idea has been around for quite a few years.  Risk-Parity is an alternative approach to portfolio construction where assets are allocated based on risk rather than allocation according to … [Read More...]

400 Level

“New Normal” Three-Year Risk Reduction Analysis

In the prior blog entry I used five years of data for the QPP analysis of the "New Normal" portfolio when the allocated percentages were based in equal risk rather than allocating assets according to capitalization.  In this QPP analysis I use three years of data instead of five. This blog entry is not for publication elsewhere on the Internet. … [Read More...]

StockCharts for Basic Six

Readers who are following the ITA Risk Reduction model will note that only two of the "Basic Six" equity ETFs are currently above their 195-Day EMA.  Despite the market decline yesterday, VTI and VNQ held above the critical EMA.  IWN, VEU, VWO, and RWX either dropped below or stayed below their 195-Day EMA. To check your own holdings, go to this link for information. … [Read More...]