Kepler is the asset allocation portfolio scheduled for a review this morning. The current lineup of ETFs is only three months old so we have little data as to whether this new asset allocation mix will improve the historically poor performance of the Kepler. As currently constructed the portfolio will throw off approximately 4.0% in dividends, and that is without the portfolio being in … [Read More...]
Retirement Planning Mistake #1
Mistake number one in my book is failure to save or to not follow The Golden Rule of Investing. Open up a spreadsheet and run your own calculations for the following classic comparison. As a nineteen year old you have the foresight and financial … [Read more]
Advisors Do Not Add Alpha
ITA Wealth Management is all about learning to manage your own portfolio instead of hiring a professional money manager. Here is added evidence that consultants and advisors are not adding alpha to some of the most recognized portfolios in the … [Read more]
Feynman Portfolio Study: Part 9-1 Diversification, Correlation and Clusters
In this Post I introduce the concepts of Cluster Analysis to Portfolio Construction. Hierarchical Clustering is a mathematical/statistical method of analysis supported by widely accepted scientific methods. Don’t worry, I’m not going into all that … [Read more]
Great Operatic Choruses
If you enjoy majestic choral work conducted by Robert Shaw, this CD is for you. Grand and Glorious: Great Operatic Choruses is one fine collection. I am partial to the Pilgrim's Chorus, Chorus of Hebrew Slaves, Prisoner's Chorus, and the selection … [Read more]
Top Twenty-Five Classical Composers
Top Classical Music Composers When I first started to make a list of of my favorite classical composers, the idea was to limit it to the Top Ten. I found that to be impossible so I expanded it to 25. Even then, several of my favorites did not make … [Read more]
Correlation Matrix of Critical ETFs
As requested in a comment, here is the correlation matrix of critical ETFs used in nearly all the ITA portfolios. I cut the time frame to 23 months of data so VSS and VNQI did not show up with "short-term" data errors. Identical percentages were … [Read more]
Keep It Simple
Don't be surprised if you don't know the difference between a benchmark ETF and a strategic ETF. Strategic is sometimes called "Fundamental" or "Active" and they differ from the ETFs we recommend for our ITA portfolios. To read more about the … [Read more]
Buffett vs. Steadman
For every Warren Buffet there are a hundred Charlie Steadman's in the investing world. While nearly every investor has heard of Buffett, few remember Charlie Steadman. Is there a reason for this short memory? “Until he died at age 83 in 1997, … [Read more]