100 Level

How Many Asset Classes or ETFs Are Required to Construct Diversified Portfolio?

One of my favorite blog writers is Geoff Considine of the Portfolioist.  Yesterday, November 28th, Dr. Considine published an interesting article that begins to answer the above question - How many asset classes or ETFs are necessary to build a well-diversified portfolio?  Considine posits ten (10) asset classes will provide sufficient diversification.  David Swensen argues in his book, … [Read More...]

Ten Best Investment Books

Education is a step toward financial success. Where does one begin when trying to come up with the top ten investment books? Here is my list, but be forewarned, this is not a list of books that focus on either fundamental analysis of stocks, nor is it a list of books explaining technical analysis. In fact, the list below is the antithesis of stock picking. My list of the top ten investment books … [Read More...]

300 Level

Newton Portfolio Review: 20 March 2012

It is again time to check in on the Newton Portfolio.  The following Dashboard shows the Strategic Asset Allocation plan for the Newton, and nearly all the asset classes are in balance.  I am not concerned about the under-target in international bonds as it is counter balanced by overweight in domestic bonds. Portfolio Performance:  Readers who have been following the Newton can … [Read More...]

Portfolio Activity

Photograph: Cafe in Dublin, Ireland Einstein Portfolio Changes Shares of VOE were sold from the Einstein Portfolio in an effort to bring the Mid-Cap Value asset class into balance.  As you can see from the Dashboard worksheet below, this asset class is still over target, even with the Threshold set at 30%.  Normally, if one were adding significant amounts to the portfolio each month, … [Read More...]

200 Level

What The Experts Say About Index Investing

Photograph:  Georgia O'Keeffe Museum Research Center - New Mexico   Perusing the Bogleheads web site, I found this long list of quotes from well known investment writers and managers.  Here is what they have to say about index investing.  These bits of wisdom further explain why I favor tilting investments toward non-managed index vehicles.  Further, I favor ETFs for … [Read More...]

Asset Allocation Example

In the table below, viewers see the asset classes discussed in a prior blog entry.  We are looking at fifteen asset classes, including Cash. In the second table the sample asset allocation is broken down into percentages and we cut out the Core holding, moving the number of asset classes to twelve. [Table=6] … [Read More...]

400 Level

Where Are We With The Technical Indicators?

About all I can say about this volatile market comes from Peanuts.  Good Grief!  If I were King, I would cool off market volatility by accessing a small tax on every share traded and not held for fewer than 30 days.  We could balance the national budget and begin to pay off the national debt -- and do it on the backs of those who are able to most afford it.  Since this is … [Read More...]

Sortino Ratio: Revised Calculation

Platinum members likely picked up my reference on the new Sortino Ratio (SR) calculation in the comments section.  When you first log on to ITA Wealth Management, be sure to check for the latest comments or better still, sign up for a comments RSS.  What is changing with the SR calculation? … [Read More...]