100 Level

Ten Biggest Investor Mistakes – #6

  ITA Wealth Management Mistake #6:  Insufficient Diversification   It is a mistake to think your portfolio is properly diversified simply because you have chosen stocks or index funds across differing sectors. That’s not enough.  Investing across all sectors will not coverall asset classes, but investing across all asset classes will cover all sectors.  There is … [Read More...]

Market Movement: Paying Attention

Technical Analysis of Broad Market, VTI Today's blog entry deviates from the passive portfolio management advocated here at ITA Wealth Management.  Why shift gears at all?  When the latest Ibbotson research shows that 75% of the movement of a portfolio is tied to the broad market movements it is prudent to pay attention to market conditions.  This entry falls under the general … [Read More...]

300 Level

Portfolio Management

Developing Portfolio Policy Portfolio management begins with a well considered Portfolio Policy. Basic portfolio plans include the following: Asset classes to include in the portfolio Percentage to invest in each asset class Investments to populate asset classes Portfolio monitoring method Projected return analysis Projected risk analysis Selection of appropriate … [Read More...]

Please Keep It Simple: A Basic Seven-Eight ETF Portfolio

Is it possible to put together a simple portfolio?  I don't want anything too complicated, particularly when I am just beginning my investing career.  Such requests are common and the answer is - yes, it is possible to build a simple portfolio.  The diversification may not be the best, but that issue can be address later.  Below is a basic portfolio any investor can … [Read More...]

200 Level

Asset Allocation: Medium-High Risk Portfolio

This is the fourth portfolio in this series of relative risk allocation plans based on the data table found in this blog entry.  Note how the projected return is rising, but so is the projected uncertainty.  Return and Risk are highly correlated.  It is difficult to find a combinations of tickers that will increase the projected return while driving down the projected standard … [Read More...]

Seeking Alpha Article on Establishing Goals

Readers will find an article on some of the goals I set when building a portfolio over at Seeking Alpha.  Check it out.  I hope to elaborate on this goals in the coming weeks. Lowell … [Read More...]

400 Level

Point & Figure Graph Indicators

Point & Figure graphs are useful for identifying ETFs that may be a potential buy.  P & F charts are one of the metrics I use as a clue for potential buying (holding or selling) opportunities.  Below I show examples that illustrate the four basic conditions.  I am looking at the slope of the line, positive or negative, and whether or not there has been positive or negative … [Read More...]

A Twist to the ITA Risk Reduction Model

Photograph: Mountains near Emerald Bay at Lake Tahoe.  Taken from the California side of the lake. While we want to keep the ITA Risk Reduction model as simple as possible, there is another wrinkle available for sophisticated investors.  Platinum readers will be interested in the explanation that follows. Platinum membership is available for $5.00 per month.  Learn how to reduce … [Read More...]