100 Level

Is There a Holy Grail of Investing?

Robert A. Haugen, author of The New Finance, posits there is a "holy grail" of investing. In the first pages of the edition I recommend, he launches into the “celebrated” Fama & French study. He points out the F&F study was voted as the best article published in the Journal of Finance in 1992 by the widest margin in history! Here are a few details of how the study … [Read More...]

Bonds: Should They Be Part Of The Asset Allocation Plan?

While I am not going to go into the details until a later post, this is a quick note to let Platinum members know that bonds are on "notice." … [Read More...]

300 Level

High Yield Retirement Portfolio

A Platinum member submitted the following portfolio for analysis.  The portfolio is designed to throw off income for a retiree and as you can see, the historical yield is a very high 4.6% so the portfolio is meeting that goal.  Take note that the portfolio outperformed the S&P 500 and did it with much lower risk. The projected return over the next six to twelve months is 7.6% or very close … [Read More...]

Staying On The Right Side Of The Market With A Ten ETF Portfolio

Remaining on the right side of the market is critical to reducing portfolio risk.  Platinum members should be well aware of the ITA Risk Reduction model, our first line of defense.  Remember Faber's axiom that ETFs are more volatile when they are priced below the 200-Day Simple Moving Average.  Here at ITA we use a faster EMA, but the difference is not significant and the … [Read More...]

200 Level

Portfolio Performance Data: 10 August 2012

As promised earlier in the week, here are the performance values for the eleven portfolios tracked on ITA Wealth Management.  Platinum members have access to all the transactions for eight of the eleven portfolios.  Detailed information is not available for the Maxwell, Euclid, and Madison portfolios.  If this data shows anything, it is how difficult it is to outperform the broad … [Read More...]

Retirement Planning

Just a short note to all readers that this is a "must read" article on retirement planning. This Portfolioist article is along the lines of all "The Golden Rule of Investing" blog posts I've written in the past. … [Read More...]

400 Level

Optimizing QPP Analysis Asset Allocation Models

Some years ago I tested a Mean-Variance Optimization (MVO) software program that was designed for William Bernstein.  Manual data entry and knowing if it was accurate proved to be a problem.  Much to my surprise, I recently received an e-mail from the developers of Quantext Portfolio Planner (QPP), pointing me to an article that an Excel™ guru developed an optimization spreadsheet that links to … [Read More...]

VTI Within Striking Distance

Readers following this blog know about the Tactical Asset Allocation or market timing method we are about to employ with the Maxwell and Euclid portfolios.  These two portfolios were selected as they consistently lag behind the VTSMX benchmark.  I want to come up with a title more original than the Faber-Richardson method so users can do a search and easily find information on what is … [Read More...]