100 Level

Blog Clues For New Users

If you are new to ITA Wealth Management and are having some difficulty finding your way around the blog, here are a few hints. 1) I just introduced a new Category which you will find in the right sidebar.  Open up the Categories pull-down menu and look for Free Information under Level 100.  Only a few of the free blog posts are identified, but this will get you started. 2) A good way … [Read More...]

Hedgehog or Fox Investor?

Do you fall into the hedgehog or fox style of thinking, and how does it impact your investing methods? (The fox knows many things, but the hedgehog knows one big thing.”) Think about this for a moment before answering. Maybe we are all a little bit of both, but lean more to one side than the other in our thinking processes. As a Mosaic Investor, I like to think of myself as a “fox … [Read More...]

300 Level

Bohr Portfolio Update: 30 May 2013

A few adjustments in the Bohr Portfolio took place over the last month based on recommendations coming out of the optimization-momentum spreadsheet.  For example, shares of BND and TIP were sold and shares of VCR and VTI were added to the portfolio.  The Bond and Income asset class is below target due to sales of BND and TIP, and Large-Cap Growth moved above target as a result of adding VCR to the … [Read More...]

Newton Portfolio Update: 13 September 2012

Slowly, the Newton Portfolio asset classes are coming into balance.  The major move now required is to lower the holdings in bond and treasury ETFs and reallocate that cash into the few asset classes that are still under target. … [Read More...]

200 Level

Keeping Portfolios Simple

Three Sample Portfolios Complicated portfolios discourage investors and that is why I am attempting to simplify the portfolios tracked here at ITA Wealth Management.  There are many examples of possible portfolios in the literature, particularly in books by Faber-Richardson, Swensen, and Bernstein.  Let's start with one of the simple portfolios laid out by David Swensen. While Swensen does not … [Read More...]

ITA Portfolio Performance: 28 January 2012

What a great week for the eleven ITA Wealth Management portfolios!  All showed both absolute and relative positive performance returns.  Every portfolio gained ground on the VTSMX benchmark.  The simple reason is due to rising prices in developed international markets (VEU), emerging markets (VWO), and international REITs (RWX).  In other words, our globally diversified … [Read More...]

400 Level

Risk-Parity: A Brief Explanation of How Risky a 60/40 Portfolio Really Is

While I have a sample Risk-Parity portfolio coming out early tomorrow morning, I want to rush out a brief description of how risk is calculated.  This not for the mathematically squeamish, but the concept is not difficult if one can get past one step in the logic.  Don't be surprised if this concept does not alter how portfolios are put together here at ITA Wealth Management.  … [Read More...]

ETFs As Market Predictors

While our focus is on the long-term rather than market timing, it still makes sense to pay attention to market action.  This article is one I thought readers would find interesting.  In addition to following RSP and IYT, I recommend Platinum members also track VTI, Vanguard's total U.S. equities market and VT, Vanguard's Total World equities market. … [Read More...]