100 Level

Solving Investment Problem #2: I don’t know where to begin.

For readers or prospective investors who don't know where to begin, one place to start is to click on the Category to the right titled, Beginning Investors.  My second recommendation is to read two short books.  The two easiest investment books that will put you on the right path are: "The Investment Answer" by Daniel Goldie and Gordan Murray and "The Elements of … [Read More...]

Why Doesn’t Everyone Use Passive Investing?

If passive investing is so successful, why is it that so few investors actually use this approach to construct and manage their portfolios?  Good question and one that likely has a scores of answers. Here are a few to consider. 1.  There is a large collection of investors who are confident they can beat the market.  Ego certainly enters into this thinking.  Why would I be … [Read More...]

300 Level

Positioning the Maxwell, Euclid, and Madison

In preparation to launch the ITA Risk Reduction model for the Maxwell, Euclid, Madison, and possibly one or two more portfolios, the basic asset allocation is laid out below.  SDS is shown only as a possibility in unusual circumstances.  The percentages as shown apply only when the ETF price lies above its 195-Day Exponential Moving Average (EMA).  Such is not the case right now as … [Read More...]

Mosaic Portfolio Lookback – 31 March 2008

Moving from January of 2008 on to the end of the first quarter in 2008, what is the Mosaic Portfolio projecting?  The following QPP analysis continues to show strong returns and low volatility.  This gives rise to an above average Return/Uncertainty ratio of 0.66.  Remember that anything above 0.60 meets the desired target.  The diversification metric and portfolio … [Read More...]

200 Level

Portfolio Performance: 14 January 2012

This week saw absolute gains in every portfolio and relative gains against the VTSMX benchmark in five of the eleven portfolio.  Only the Newton and Bohr lost a small fraction of a percentage point with respect to the VTSMX while the Curie, Schrodinger, Kepler, and Euclid remain unchanged.  It was encouraging to see the Einstein, Kenilworth, Maxwell, Madison, and Gauss gain small amounts … [Read More...]

Repositioning Madison Portfolio

ITA Wealth Management readers checking the latest Portfolio Performance* data table will observe that the Madison Portfolio is lagging the VTSMX benchmark.  In an effort to push this portfolio performance to a higher level, I am going to employ the ITA Risk Reduction (ITARR) model, or the same one being used for the Maxwell and Euclid portfolios.  This will require selling some current … [Read More...]

400 Level

“Delta Factor” Projections For Sector ETFs

While I do not build portfolios around sectors of the stock market, it is important to review sectors ETFs as it provides another view of market conditions.  We examine the Bullish Percent Index information as shown in this article, to see where the market as been and is it over bought or under sold.  When the BPI values are above the 70% line, as most are today, we argue the market is too high to … [Read More...]

Sortino Ratio Update

Investors using the TLH spreadsheet and in particular, the SR worksheet, will find this video/audio clip a refresher in updating the Sortino and Retirement ratios. One of the first changes to make in the calculation is to update the inflation rate. The latest data shows inflation moving from 1.1% to 1.2%. Readers can find this information on a site titled, U.S. Inflation Calculator. In the … [Read More...]