100 Level

Key Ideas to Beginning Your Retirement Program

Keys to successful retirement investing. It All Starts With Saving Follow The Golden Rule of Investing.  Time is money. “Save as much as you can as early as you can.” Five critical investment decisions. The Management Decision Will you do it yourself or will you hire a professional money manager? The Active vs. Passive Decision Will it be stock, index funds, … [Read More...]

Bullish Percent Indicators Show Markets Continue to Weaken

Bullish Percent Indicators (BPI) provide us with a broad look at large index and sector movements for the U.S. Equities market.  While I do not use either the index or sector tables as trading tools, I do watch them for general market trends and as guides to determing when the market is over bought or over sold.  Right now the market is over bought and weakening. Index BPI:  One significant … [Read More...]

300 Level

IVY-1: Five Asset Class Analysis

What does Faber's five asset class portfolio look like when analyzed in more detail?  Would you be satisfied with a portfolio made up of only five ETFs even though they cover a majority of the world markets?  Take a look at the analysis below for a closer examination of the correlations, projected return, and projected standard deviation or risk. Looking for an improvement on the … [Read More...]

Portfolio Performance Data: 4 March 2011

Photograph: Harley at the cabin in Central Oregon Platinum members will find the performance data below.  This is the first complete update since the February statements became available.  In almost every situation, the portfolios gained ground on the VTSMX index.  Quite a few showed improvement in the Sortino and Retirement Ratios, possibly the key measurement. Platinum … [Read More...]

200 Level

Portfolio Performance: ITA Ratio

When there is a lot of blog activity it is easy for the Portfolio Performance data table to be pushed off the screen and missed by readers unless they remain current with the new entries.  I'm bringing back the August 13th table with additional data.  Added to this table is the recently developed ITA ratio, another risk measurement that sets a high bar for portfolio … [Read More...]

Risk Adjusted vs. Capitalization Asset Allocation Portfolio Construction

Is it better to construct a portfolio based on allocating assets around capitalization divisions or is one better off using a risk adjusted platform?  The following two screen shots show the details of these two approaches to portfolio construction.  In each case I am using ten ETFs that provide worldwide diversity.  Four years of historical data goes into the following Quantext … [Read More...]

400 Level

Expecting Market Volatility and What To Do About It

If you need additional evidence that we are in a season of volatile markets, check out this Portfolioist article.  Recognizing that market ups and downs are not about to leave us very soon, what are some options available to investors?  How can we temper daily market moves of 2% or more?  Risk reduction is becoming more and more important. A few days ago, I had reason to pull … [Read More...]

Portfolio Performance

Photograph:  Dome of Blue Mosque in Istanbul, Turkey If you hear someone come across a bit strong when it comes to portfolio performance, ask a few simple straight-forward questions. 1.  How is the performance measured and does it meet AIMR standards?  Professionals will know AIMR stands for Association for Investment Management and Research.  ITA Wealth Management readers … [Read More...]