100 Level

Rule #7 of Investing

Fire your investment advisor and/or broker. Make this move unless you have an extremely complicated financial situation or you cannot bear to deal with the details of portfolio management. In the latter case, you are not likely reading this blog as this is a do-it-yourself site. In the former situation – is your portfolio that much more complicated than a large pension fund? If not, then you … [Read More...]

Ivy Portfolio: 5 Asset Classes

Mebane T. Faber and Eric W. Richardson, in their book, "The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets," provide three sample portfolios that attempt to emulate the Portfolio Policies of the top academic endowments in the country.  Special attention is given to Harvard and Yale. This week I will be analyzing the five, ten, and twenty factor … [Read More...]

300 Level

Curie Portfolio Update: 21 December 2011

After making minor adjustments in the Strategic Asset Allocation plan, I picked up shares of VB and RWX for the Curie Portfolio.  These few shares brought Small-Cap Blend (SCB) into balance, but we are still several hundred shares below target with International REITs.  One reason for not purchasing more RWX has to do with the large price differential between the current price and the … [Read More...]

QPP Analysis of Kenilworth

As a follow up to the update of the Kenilworth, below is a Quantext Portfolio Planner (QPP) analysis of the current holdings. When running a QPP analysis under the current market conditions, inflation is set at 4.0% and the S&P 500 is assumed to grow at 7.0% over the next six to twelve months.  An "ideal" portfolio will see the projected return exceed 8%, projected standard … [Read More...]

200 Level

Preparing for Retirement: Avoid the Dunning-Kruger Effect

A few days ago I came across an article on the psychology of investing over on the Portfolioist blog.  The article is written by Daniel R. Solin, author of "The Smartest Portfolio You'll Ever Own." Readers will recall that I analyzed some of the portfolios from the Solin book here on ITA Wealth Management.  When I read articles of how our brains can get in the way of … [Read More...]

Portfolio Performance Update: 24 February 2012

What a dull market this week.  Several of the portfolios experienced no changes across the board.  In many cases the Internal Rate of Return (IRR) values dropped 0.1% point on an absolute scale.  When measured against the ITA Index, four portfolios remained the same, five lost a small percentage and two gained a small percentage.  Small changes occurred with respect to the IRR … [Read More...]

400 Level

Let’s Get Serious About Reducting Risk

Most readers of ITA Wealth Management remember the dot com crash of 2001 and 2002.  If that memory faded, the devastating bear market of 2008 and early 2009 is still with us unless one was a shepherd in Patagonia.  I assume there are more than a few readers who still recall the bear market of the mid-1970s, and the long wait until the market suddenly woke up on August 12th of 1982 - only … [Read More...]

QPP Analysis of iShare ETFs Over Different Periods

Over the last few days I've posted a number of entries related to the "Delta Factor" (DF) analysis.  This flurry of DF articles came about as a result of questions tied to entry into the market.  If one is holding cash, when is a good time to begin investing that cash into equity and bond vehicles, be it individual stocks, index mutual funds, or index ETFs?  Readers … [Read More...]