100 Level

Ten ETF Commandments

An Internet friend pointed out this site that features many key ETF guidelines. The catchy title of "Ten Commandments of ETF Investing" does not hurt either. While I consider all these commandments valuable, I recommend concentrating on #s 10, 9, and 3. When you have more time, come back and review the other seven. … [Read More...]

Trading Is Hazardous To Your Wealth

Portfolio turnover is a problem for investors. It is a much larger problem than most realize. Swensen writes in “Unconventional Success,” “In an industry characterized by a long litany of shockingly dysfunctional behaviours the frenetic churning of mutual-fund portfolios stands near the top of the list. In 2002, the weighted-average turnover of equity mutual-fund portfolios … [Read More...]

300 Level

Portfolio Performance: 9 September 2011

The first full week in September was a mixed bag.  For starters, the market was down when measured by the VTSMX.  Several portfolios gained ground with respect to the ITA Index, our customized benchmark.  A few portfolio picked up fractions of a percentage point on the VTSMX.  A few also showed stronger Sortino ratios while others declined in value. Below is the performance … [Read More...]

Thinking Through the Madison Portfolio

With the Madison Portfolio due for review tomorrow, what decisions are likely to be made based on the data from the Buy-Hold-Sell Recommendation table?  As you look over this table, think through the steps you would make if this were your portfolio.  No specific data is provided as to holdings or size of portfolio. Buy-Hold-Sell Recommendations:  Followers of the ITA Risk Reduction model will … [Read More...]

200 Level

QPP Analysis of Another Low Risk Retirement Portfolio

The nexus for the following portfolio begins with this Seeking Alpha article and the follow-up QPP analysis of a portfolio suggested by a SA reader.  A link to the second analysis can be found here.  And now we come to the third portfolio in this series of low risk retirement plans.  This last set of ETFs was suggested by a reader of the ITA blog. The four ETFs that make up this … [Read More...]

Sample Retirement Portfolio

The following portfolio is one suggested by a Platinum member.  The first screenshot shows the original asset allocation.  For reference, the assumed growth for the S&P 500 is 7% annually.  Should I ever forget to include this assumption, readers can check by looking at the bottom right section (gray background) to see the projected return and projected standard deviation.  The time frame is … [Read More...]

400 Level

Why I Did Not Sell RWX Out of The Euclid Portfolio

Followers of the ITA Risk Reduction model may be puzzled as to why I continue to hold a full load of RWX, the international real estate ETF.  After all, is the price not below the 195-Day Exponential Moving Average (EMA)?  Yes, the rule calls for a sell.  However, in this case I applied a PnF judgment call and it looks like the following.  We are looking at a "High Pole … [Read More...]

Bohr On April 30th: Example of New Spreadsheet

This is a sneak preview of the new optimizer-momentum spreadsheet David created today.  The data is what the Bohr portfolio looked like at the end of April.  Some trades occurred in May and those will show up when the Bohr is updated in a little less than a week. Efficient Frontier:  The efficient frontier looks the same as before.  Readers familiar with this graph will not the Bohr Portfolio … [Read More...]