The Schrodinger is the one passively managed portfolio among all the portfolios tracked here at ITA Wealth Management. This is a computer managed portfolio, or what I call the experimental Robo Advisor portfolio. With this portfolio I do nothing except invest money. The reason for running this test was to respond to a question, “Who […]
Asset Allocation Feature of the Kipling Spreadsheet
In response to a question raised by an ITA Platinum member, I’ll attempt to answer how the Asset Allocation option works within the Kipling spreadsheet. I asked HedgeHunter to add this feature to the Kipling. The whole concept of building a portfolio around the idea of asset allocation is an old one and it is […]
Asset Allocation: Keeping It Simple
The following asset allocation article was sent to me by Leland Feigner, and I think it merits a special post as I expect the Comment section will be overflowing in a few days. I have yet to digest the entire article, but plan to do so tomorrow. The Robust Asset Allocation (RAA) article spends some […]
Asset Allocation: How Important to Portfolio Returns?
Asset allocation was considered the Holy Grail of investing back in the 1990 during one of the strongest bull markets on record. The concept of building a portfolio using a wide variety of asset classes received a boost after the Brinson et al. papers were published in 1986 with a followup in 1991. Over the […]
Commodities: What Percentage Is Required For Diversification?
At a recent investment meeting a discussing came up around the need to include Commodities in a portfolio and what percentage is required to shore up a portfolio in case inflation takes off or we encounter another market correction. Keep in mind that Commodities, as an asset class, is considered an inflation protector. David Swensen, […]
The Asset Allocation Hoax
Prominent asset allocation critic, William Jahnke, titled his 1997 attack on the Brinson et. al. (BHB) papers, “The Asset Allocation Hoax.” Jahnke’s criticisms of the two papers are many. He argues the authors do not focus on the proper problem, they report the wrong number, cost is not considered, and they give the wrong advice. […]
How Important Is Asset Allocation?
Asset Allocation – Is it really important? My favorite investment writer is William J. Bernstein, author of several investment books and the editor of the Efficient Frontier. This morning I was scanning the data files of ITA Wealth Management and found where one reader clicked on one of the older articles from Bernstein’s Efficient Frontier. […]
Asset Classes: How Many Should I Own?
With much recent attention given to answering the money managers most perplexing question, what percent of the portfolio should be invested in each asset class, the whole idea of how many asset classes to include in a portfolio has been neglected. William Bernstein answers the question this way. “You might as well ask the meaning […]