California Route 1
What is on the other side of the 3 x 5 investment card that you can make use of as an investor? To capitalize on this information, go back and read the basics found on the 3 x 5 card, and follow it up by reading this short blog. The links to these two blogs provide overall investment guidance. But where does one go from this point forward? Where are the specifics? How do I go about constructing a portfolio?
To get started I highly recommend going back and reviewing the three basic investment styles used by 15 portfolios on this blog. A fourth style is to use options. Option investors are directed to follow the Hawking portfolio.
Style One: Strategic Asset Allocation – Four ITA portfolios follow this model. They are:
- Schrodinger Portfolio
- Copernicus Portfolio
- Pasteur Portfolio
- Bethe Portfolio – the newest portfolio tracked here at ITA Wealth Management.
Style Two: Dual Momentum – Four ITA portfolios follow this model. The dual momentum model is the easiest to implement, particularly if one is using the Kipling Tranche Spreadsheet. The four portfolios are:
- Maxwell Portfolio
- Euclid Portfolio
- Aristotle Portfolio
- Galileo Portfolio
Style Three: Tranche Momentum Model – Seven ITA portfolios follow the Tranche Momentum Model (TMM). They are:
- Newton Portfolio
- Curie Portfolio:
- Einstein Portfolio
- Kepler Portfolio
- Bohr Portfolio
- Gauss Portfolio
- Huygens Portfolio
While the TMM is made easier with the help of the Kipling spreadsheet, this model of investing requires judgment on the part of the money manager. For that reason, it is more difficult to learn and implement. One can learn the TMM by following the reviews of these seven portfolio. If there are gaps in my explanations, please post comments in the Comments section associated with each blog post.
In a past I’ve written about dividing a portfolio into different parts and using different models for various segments of the portfolio. Not only does this provide additional ETF diversification, but one is reducing risk by diversifying management styles. Give this concept serious consideration.
Link Note: There are numerous links within this blog post. My software does not do the best job of showing these links (underlines are dim) so pay attention and look for the links.