Bond Market: Important Article

Platinum members will want to read this important article from Seeking Alpha.  This paper is not an unusual or "off the wall" position.

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Franklin Portfolio Update: 1 July 2011

The TDAmeritrade broker accounts are available so I am in the process of updating the various portfolios tracked here at ITA Wealth Management.  The first round of updates will focus on portfolios tracked using the TLH spreadsheet, followed by those tracked using the Captool software.  As mentioned in prior posts, I wanted to give the Franklin Portfolio time to develop through the second quarter.  The results are now available as one can see below.  In the first screen shot we see the allocation plan originally developed by a financial advisor.  The current portfolio is focused on large-cap stocks with a tilt toward growth.  This is in conflict with the ITA Wealth Management philosophy.  We prefer to tilt the portfolio toward smaller-cap asset classes and definitely toward value.  There will be an effort to rebalance this portfolio over the next six months, if not sooner.

The following slide shows the performance of the portfolio with respect to the various benchmarks.  Keep in mind this is a young portfolio so a few dollars difference creates a large percentage gap in the Internal Rate of Return (IRR) values.

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