100 Level

Schrodinger Portfolio Faces Off Against Similar DFA Asset Allocation

The Schrodinger Portfolio is our premier passively managed portfolio that has been operational since 12/01/2000.  Looking back over the past five years (6/29/2007 - 6/29/2012), how well has this portfolio performed when compared to a portfolio made up of DFA mutual funds with a similar asset allocation plan?  The results are rather stunning in favor of the Schrodinger. Schrodinger … [Read More...]

Tax Deferred Accounts: How To Begin Your Investment Plan

Planning and Saving for Retirement Whether you are just beginning to establish a tax-deferred or taxable account, the basics principles of investing are the same.  Saving and developing an investment plan are the basic starting points.  Readers of ITA Wealth Management have The Golden Rule of Investing drilled into their thinking so they understand the importance of saving and doing it as early … [Read More...]

300 Level

Mosaic Portfolio: Do Stocks Enhance Portfolio?

A few days ago a Platinum member asked for a simplified portfolio that one might use in retirement.  While the following Mosaic (ETFs and Stocks) portfolio may carry too high a risk for some investors, if one uses the ITA Risk Reduction (ITARR) model guidelines, risk or volatility is greatly reduced.  It does require attention to what is going on, but the peace of mind is likely worth the … [Read More...]

What Is A Good Sortino Ratio?

Seeking a Good Sortino Ratio A reader of ITA Wealth Management was seeking an answer to the question, what is a good Sortino Ratio?  The simple and quick answer is - anything above zero.  Check this definition of the SR.  While the equation is quite simple, the difficulty comes in calculating the denominator. SR = (P - T)/DR where P is the portfolio return T is a portfolio … [Read More...]

200 Level

Basic Information for Momentum-Optimization Model Investors

Investors wishing to set up a basic portfolio will find all the essential information in the following three screenshots.  The slides are as follows. Ranking of ETFs that will provide global coverage and include low correlated securities that can be used during bear markets. Current Buy-Hold-Sell recommendations for rebalancing assume the investor is employing the ITA Risk Reduction … [Read More...]

Active vs. Passive Investing

ITA Wealth Management readers will recall the five decisions discussed in "The Investment Answer," a short book authored by Daniel Goldie and Gordon Murray, who died of brain cancer last month.  Those five fundamental decisions are:  1) Do-It Yourself Decision, 2) Asset Allocation Decision, 3) Diversification Decision, 4) Active versus Passive Decision, and 5) Rebalancing … [Read More...]

400 Level

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...]

“Delta Factor” Projections for Bond ETFs

"Delta Factor" projections for bond ETFs are grim for the next few months.  All but BWX are negative in the Delta column.  SHV only rounds to zero as it is also negative.  While a number of bonds are showing a "Delta Factor" of Hold, the bias or tilt is definitely down as shown by the Delta column.  The general prediction is to hold these ETFs with great … [Read More...]