There are four basic portfolio management styles used here on the ITA Wealth Management blog site. They are as follows and I include an example portfolio for each. I list them easiest to most difficult to manage.
- Dual Momentum Model – Galileo Portfolio – I consider this the easiest as only three ETFs plus SHY are required. Place the three ETFs in the Kipling Tranche spreadsheet and viola. You have your answer as to what to do. Nothing to it. Over the long-run you will outperform most professional money managers.
- Strategic Asset Allocation Model – Schrodinger Portfolio – The SAA model is a buy and hold strategy. We call it passive management. The manager does need to perform a few critical initial decisions.
- Select what asset classes to use to manage the portfolio. Check either the Schrodinger or Bethe portfolios for clues.
- Determine what percentage to allocate to each asset class. I consider this to be one of the most difficult decisions for SAA managers. Again, check the Schrodinger and Bethe for suggestions.
- Tranche Momentum Model – Bohr Portfolio – I suggest the Bohr as I updated it moments ago. Another portfolio is the Einstein. This management model requires some decisions, although one could follow the recommendations that come directly from the Position Sizing worksheet. The recommended number of shares can be found in column 13 of the worksheet. spreadsheet. The Position Sizing worksheet is found within the Kipling Tranche spreadsheet.
- Options Model – Hawking Portfolio – This is by far the most complicated portfolio management model and is recommended only for sophisticated investors. Search Hawking for more information.