100 Level

Passive Investors

Passive Investing or Passive Management: Passive investing is the antithesis of active investing. Investors who subscribe to a passive style of investing do not think they can beat the market. Passive investors are strong advocates of the efficient market theory and that is – all information is reflected in the price of the product. While passive managers conclude they cannot beat the market … [Read More...]

Sixteen Asset Classes: The Basic Portfolio

More Asset Classes Are Not Enough TLH Spreadsheet users are familiar with the sixteen (cash is excluded) asset classes used with most of the larger ITA Wealth Management portfolios.  Below is what I call the Basic Portfolio as standard ETFs are used to populate the different asset classes. Despite all the asset classes being populated with nearly equal percentages, there is something … [Read More...]

300 Level

Bond Bubble: TAA Changes Required

Tactical Asset Allocation for Bonds Over the last few months I've been reducing holdings in bonds and treasury ETFs.  Reduction in ETFs such as BND, HYG and TLT is not a permanent change, but one I am making due to inflation pressure and the very low interest rates.  Decreasing the asset allocation to bonds and income falls under an active management decision called Tactical Asset … [Read More...]

Five-Year Analysis of “New Portfolio”

As promised, Platinum members can see the asset allocation for a portfolio designed to take advantage of the economy when it is in a growth stage while defending against inflation, and to a lesser degree, deflation.  While the portfolio is not recession proof, there are aspect to the following list of ETFs that will buffer against a recession. … [Read More...]

200 Level

Portfolio Performance: 27 May 2011

Portfolio Performances Updated All but one portfolio showed improvement vs. the VTSMX index.  Improvements were also evident for the Sortino and Retirement ratios.  Our asset allocation plans were working in full force this past week, a positive signal. Only the newest portfolio, the Franklin, lost ground and it is much too early to draw any conclusions.  As mentioned before, we … [Read More...]

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...]

400 Level

Playing Defense With The “Holy Grail” Portfolio

While there is no such thing as a "Holy Grail" portfolio, humor me for a few minutes and think of this simple seven ETF portfolio as a sound basic portfolio. The purpose of this post is to test how one might play portfolio defense and when is such a move necessary.  First, we take a look at the current QPP analysis for this seven ETF portfolio. Platinum membership is available for … [Read More...]

Changing Positions of Maxwell and Kepler

Photograph: Covered Bridge at Grist Mill just east of Woodland, Washington One of the five ITA Risk Reduction (ITARR) model portfolios is the Maxwell.  Last Friday several asset classes, as represented by particular ETFs, dropped below the critical 195-Day EMA trigger point.  Trailing Stop Loss Orders were set and today, May 8th, a number were triggered.  Shares of VEU and VWO were … [Read More...]