100 Level

New Portfolio Study Available

ITA Wealth Management readers and subscribers who are a tad lax in keeping up with all the posts on this blog may have missed the significant beginning entries on the Feynman Portfolio Study.  To catch up just go to the right-hand sidebar and under the Categories pull-down menu, select Feynman Portfolio.  This will take you to the articles on this analysis, beginning with the first one. Do to … [Read More...]

Sydney Morning Herald Article

Photograph: Mt. Lassen in California The following article ("It's still business as usual for Wall Street") just appeared in the Sydney Morning Herald on-line paper.  The three recent crashes discussed include the 1987 drop when the DJI gave away 22% with a 522 point drop.  Then we had the tech blowup in early 2000 through 2002.  Even worse is the current Global … [Read More...]

300 Level

Newton Portfolio Update: 13 September 2012

Slowly, the Newton Portfolio asset classes are coming into balance.  The major move now required is to lower the holdings in bond and treasury ETFs and reallocate that cash into the few asset classes that are still under target. … [Read More...]

Bohr Portfolio Update: 5 January 2012

Shares of VTI and VWO were purchased this morning and additional limit orders are in place in an effort to bring the under-target asset classes back into balance.  Platinum members will note that emerging markets and international REITs are significantly under the target percentages.  I'm not in a big hurry to fully populate these asset classes with VWO and RWX as the ETFs are priced … [Read More...]

200 Level

My Twenty ETFs

Selecting 20 core ETFs is not all that difficult until one is down to the last five to seven tickers. While I could come up with my favorite 20 ETFs, that would be too simple.  Instead, my twenty will come from several major asset classes as outlined below. U.S. Equities Bonds International markets Real Estate Commodities ETFs from U.S. Equities in this search will include the "Big … [Read More...]

Optimization Correction For 12 ETF Portfolio

Here are the following assumptions I used to create the portfolio shown below.  1)  The S&P 500 is assumed to grow at 7% per year.  This percentage is adjusted by setting the Delta Return to -3.3% inside the QPP software.  2) I used five years of data running from 2/6/2008 through 2/6/2013.  3) The Solver Parameters are listed below. The following material is not available for publication … [Read More...]

400 Level

Retirement Planning: Stress Testing a Simple 5 ETF Portfolio

As mentioned in a recent post, stress testing the portfolio is one useful method of checking to see if there will be sufficient funds available to comfortably retire.  In this QPP analysis of a simple five ETF portfolio we will make some initial assumptions that will vary from investor to investor. Assume this investor is 50 and plans to retire at age 67.  The current portfolio is … [Read More...]

Risk Reduction Portfolio: A Potential Asset Allocation Plan

Bob Warasila, author of the "New Normal" portfolio, sent me an asset allocation plan that is worth sharing with Platinum members.  This Risk Reduction Portfolio differs slightly from one I recently posted over on Seeking Alpha in that this portfolio has a small exposure to precious metals and it also includes on stock.  In the following three screen shots readers will find the … [Read More...]