100 Level

Active, Index, Passive or Mosaic Investing

Investing Styles Are you an Active, Index, Passive or Mosaic investor? Answer this question and one focuses at the heart of investing. Rather than answer this question with one blog post, I will strive to define and explain the different styles over a series of entries spanning into next week. While I've written on the subject of investing styles before, I'm sure there are new … [Read More...]

ITA Risk Reduction Update

Where do we stand with ETF prices and their respective 195-Day Exponential Moving Averages?  As I am updating all the portfolios this month, I am paying close attention to the five (Maxwell, Euclid, Madison, Kenilworth, and Gauss) portfolios to see if changes are necessary based on the ITARR model.  I checked all the primary ETFs used to populate the asset classes and all are priced above their … [Read More...]

300 Level

Launching a New Portfolio and Initializing ITA Index

Platinum readers know about the funding of the new ITA-RR portfolio. Since tomorrow is the last business day of the month (December) I will take a careful look at the price points for VTI, IWN, VEU, VWO, VNQ, RWX, and IGE and compare them with their respective 195-Day EMAs.  If nothing were to change tomorrow, on January 3, 2012, I will take out a full position in VTI, IWN, and VNQ.  … [Read More...]

Madison Portfolio Update

Photograph:  Clark Fork River flowing through the center of Missoula, MT. One of the ITA Risk Reduction model portfolios is the Madison, the portfolio up for review today.  As Platinum members can see from the following dashboard, most of the asset classes are in balance. … [Read More...]

200 Level

What The Experts Say About Index Investing

Photograph:  Georgia O'Keeffe Museum Research Center - New Mexico   Perusing the Bogleheads web site, I found this long list of quotes from well known investment writers and managers.  Here is what they have to say about index investing.  These bits of wisdom further explain why I favor tilting investments toward non-managed index vehicles.  Further, I favor ETFs for … [Read More...]

Low Risk Retirement Portfolio

Yesterday, I wrote an article for Seeking Alpha and one reader suggested a simple portfolio where equal percentages be allocated to VTI, GLD, SHY, and TLT.  Exactly what does such a portfolio look like when a Quantext Portfolio Planner (QPP) analysis is applied?  What does the correlation matrix look like and would such a portfolio work as one prepares for retirement?  The following … [Read More...]

400 Level

Rule #6 of Investing

Diversify is Rule #6. Diversity reduces adversity. Simply put, spread your money out over several asset classes. For small accounts, one should at the very least consider stocks (ETF equity), bonds, and an international fund. For larger accounts, broaden into REITs, commodities, and emerging markets using ETFs or index funds. For the very largest of portfolios, break the asset classes into value, … [Read More...]

Maxwell Update: 6 June 2012

As one of the five ITA Risk Reduction model portfolios, the Maxwell was initially selected as the portfolio Internal Rate of Return (IRR) lagged both the VTSMX and ITA Index benchmarks.  The hope is that over a few market cycles, we will be able to push the portfolio IRR above both benchmarks. … [Read More...]