100 Level

The Diversification Decision

The Diversification Decision Now we come to the most difficult decision of the five laid out in the Goldie – Murray book, "The Investment Answer." If you have the book in hand, you will realize I partially answered this question when I wrote about The Asset Allocation Decision. Here is the expanded explanation of the diversification decision articulated by G & M. "Which … [Read More...]

Dinner Music: Romantic Saxophone Quintet

If you are looking for soft saxophone dinner music, this inexpensive CD is one for serious consideration.  I'm using several cuts in a few slide shows, one of a new wedding and another of a 50th wedding anniversary.  This music spans the ages.  Several of my favorites are:  Killing Me Softly with His Song, The First Time Ever I Saw Your Face, and Endless Love. There are no lyrics to distract so … [Read More...]

300 Level

Hierarchy of Buy and Sell Decisions

Burlington Northern operating in the wide open spaces of the Northwest. Hierarchy of buy and sell decision is critical, particularly when the market is running at current high levels.  Here are some guidelines I use when it comes to rebalancing the portfolio or making buy, hold, and sell decisions. The following information is not available for publication elsewhere on the Internet. … [Read More...]

Gauss Portfolio Analysis: Examining Future Projections

Photograph: Coast Guard entering Depoe Bay, Oregon Coast - USA Future portfolio projections are changing as the broad stock market continues to creep higher. With the recent interest in the Gauss Portfolio (found on itawealthmanagement.com), I will use it as an example of how Quantext Portfolio Planning (QPP) goals need to be modified. A review of the goals is found below. Take out a Platinum … [Read More...]

200 Level

Portfolio Performance – 1 October 2010

TDAmeritrade came out with the September statements this afternoon so I was able to update many of the portfolios in greater detail that expected. In nearly every case, we made progress either by gaining on the benchmarks or reducing portfolio risk. Only in the case of the Schrodinger Portfolio, where we switched to the ITA Index benchmark for our SR and RR calculations, did we see significant … [Read More...]

Portfolio Performance: 28 January 2011

Portfolio performance and risk is what it is all about, and here are the results as of 1/28/2011.  Nearly all portfolios gained on either the ITA Index or VTSMX benchmarks.  Several portfolios also showed improvement in the Sortino and Retirement Ratios.  Since today is the last business day of January, all portfolios will be updated by this coming weekend.  Platinum members … [Read More...]

400 Level

Sharpe Ratio: Why I prefer the Sortino and Retirement Ratios

The Sharpe Ratio is a measure of return-risk for a portfolio or individual investment.  Like many concepts that lend themselves to mathematics, it is easier to understand what the Sharpe Ratio means if written in the form of an equation. S = (R - T)/Sigma     (My editor does not have the correct symbol for Sigma.) Developed by Stanford Professor, William F. Sharpe, … [Read More...]

Reviewing RSI and PnF Technical Indicators

Checking RSI and PnF Graphs Periodically I'll go through the ETFs held in most of the ITA Wealth Management portfolios and give each a visual technical check.  This examination is nothing more than a quick performance look of the Relative Strength Indicator (RSI) and the Point and Figure (PnF) graphs.  In the two links I use VWO as the example ETF. … [Read More...]