100 Level

New WebSite: http://itawealth.com

Please register on the new site using real first and last names.  Registrations that do not show up as a Guest Registration will be purged from the site.  Click on the ITA Blog tab and find the registration option on the right sidebar. http://itawealth.com … [Read More...]

Risk Management: How To Reduce Losses

On page 167 of Mebane T. Faber and Eric W. Richardson's book, "The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets" we read, "Our research has shown that returns are lower and volatility is higher when asset classes are below the 10-month moving average."  What investor is not interested in reducing portfolio volatility while increasing returns.  And possibly more … [Read More...]

300 Level

Preservation of Principle

Tactical Asset Allocation for Newton Portfolio Holding on to the nest egg were my marching orders.  I did not stand in the way of these instructions for the Newton Portfolio.  With the market climbing as it has since early 2009, moving into cash makes some sense.  In an attempt to preserve capital, numerous trades took place in March and early April.  Selling off some asset … [Read More...]

Kepler Portfolio Update: 2 February 2012

Kepler Dashboard:  The following Dashboard screen shot shows the Kepler Portfolio is moving closer and closer to a fully balanced position.  More shares of RWX were added this morning and two limit orders are in place to buy more shares.  I am running low in cash so International Bonds will need to wait for dividends or an infusion of new cash.  The owner of this portfolio is … [Read More...]

200 Level

Portfolio Performance: 2 June 2012

The good news is that every portfolio improve with respect to the ITA Index, our customized index, and every portfolio with exception of the Schrodinger outperformed the VTSMX index fund.  The Schrodinger held even when compared to VTSMX.  On the downside, all portfolios with the exception of Gauss saw a decline in their IRR value.  This was not unexpected considering the lousy week … [Read More...]

Asset Allocation: How Important Today?

Asset Allocation Due to a recent Ibbotson study (Unfortunately, this article now requires one to register.) asset allocation is not the investment elixir today it was thought to be in the late 1980s and 1990s. Nevertheless, it remains the best method for constructing portfolios if the goal is to outperform a broad market benchmark index such as the VTSMX or ITA Index* while reducing portfolio … [Read More...]

400 Level

News From Recent Conference

Two days ago I returned from a conference in St. Louis.  Our hotel overlooked Busch Stadium where the St. Louis Cardinals were playing the Washington Nationals in the first playoff series.  Walking on the streets among the fans was a blast as everyone was in a good mood and it was easy to talk with strangers, particularly when I mentioned Tommy Herr, a former second baseman with the … [Read More...]

Reducing Risk Model Review: Where Are The ETFs Positioned Mid-Morning Friday June 22nd?

Market action this week moved a number of ETFs into the sell zone.  REITs (VNQ and RWX) and emerging markets sovereign debt (PCY) are still priced above their 195-Day Exponential Moving Averages (EMAs). The following material is not available for publication elsewhere on the Internet. … [Read More...]