100 Level

New Hosting Site

If you are reading this message you have arrived at the new hosting site for ITA Wealth Management. This site should load faster than the old site.  If this is not the case, let me know. To make sure you pick up all the blog entries, be sure to read material from December 17th through December 22nd on the old site at http://lherr.org/ita/   From today on, the latest material will … [Read More...]

Keeping It Simple

Investors wishing to keep their portfolio as simple as possible, yet obtain global diversification, can do it with no more than three ETFs. 1.  VTI will cover all U.S. Equities. 2.  VEU is the all-world except U.S. international ETF.  This ETF provides the global exposure we require, even for a very simple portfolio. 3.  BND, or an all bond ETF provides a diversifier or risk … [Read More...]

300 Level

QPP of Aggressive Portfolio

Back on January 18, 2012 I posted a table showing asset allocation plans that ranged from low risk to very aggressive portfolios.  At that time I posted a Quantext Portfolio Planner (QPP) analysis of the low medium-risk portfolio.  A Platinum member requested a similar QPP analysis of the high risk or aggressive portfolio.  Below is the analysis. QPP Analysis of High Risk Portfolio:  The … [Read More...]

QPP Analysis of Kepler Portfolio

Nearly six months rolled by since the last Quantext Portfolio Planner (QPP) analysis of the Kepler Portfolio.  Platinum readers can go through the QPP analysis and do not neglect the correlation matrix.  Take a close look and let me know your observations. … [Read More...]

200 Level

Retirement Portfolio: Part Three

Part three of this series of retirement preparations shows how one might optimize the array of ETFs presented in the earlier two blog posts.  In the following screen shot I set up a number of constraints and one was to hold the Diversification Metric to the 40% standard.  I also included BND, Vanguard's Total Bond ETF in the mix of investments.  Even by forcing none of the bonds to hold more than … [Read More...]

Retirement Analysis: What Must Be Done To Avoid Retirement Poverty

As promised, here is the Quantext Portfolio Planner (QPP) retirement analysis using the Kenilworth Portfolio as an example.  The first screen shot shows the assumptions involved in the analysis.  The second slide is familiar to Platinum readers as it lays out the investments and percentage in each.  The third slide is the scary one as it presents the grim details or the … [Read More...]

400 Level

Bullish Percent Indicators Continue To Show Market Weakness

Last week the Bullish Percent Indicators (BPI) began to show cracks.  This week those cracks opened up further, but not to crevasse proportions.  There was one exception within sectors as you will see below. This material is not available for publication elsewhere on the Internet. … [Read More...]

Harry Markowitz

  Modern Portfolio Theory This morning I came across an interesting article on Harry Markowitz, the father of Modern Portfolio Theory (MPT).  Early in "The Big Bang" article are the fundamental principles of MPT. Quoting from the article, here are the three basic investment techniques or ideas that come out of MPT. "Those techniques are based on three foundational … [Read More...]