100 Level

Government Shutdown: What Should Investors Do?

There are a significant number of congressional members, particularly within the U.S. House of Representatives, that seem Hades bent on closing down the government over the coming budget crisis.  It matters little that many of these same members voted numerous times to raise the debt limit under the Bush Administration.  Regardless of the politics, what defensive positions are available to … [Read More...]

Reviewing Buy and Sell Decisions: Using VNQ as Example

Platinum members are aware of the five (Maxwell, Euclid, Madison, Kenilworth, and Gauss) ITA Risk Reduction (ITARR) portfolios.  In an effort to reduce risk there are times when the price of the ETF runs well ahead of its 195-Day Exponential Moving Average (EMA) and we want to protect profits.  How can we do this?  Here are some suggestions and an example.  Remember, this pertains to a situation … [Read More...]

300 Level

Walking Investors Through Kepler Update

We begin the review of Kepler by examining the Dashboard.  The Dashboard is one of the critical worksheets found inside the TLH Spreadsheet, our portfolio tracking software program.  Several asset classes are out of balance and we will begin to make adjustments based on information found later in this blog post. Kepler Dashboard:  Depending of the optimization that is to follow, I expect to see … [Read More...]

“Holy Grail” List of ETFs for Momentum-Optimization (MOM) Portfolio

Readers who have been following The Feynman Study will be interested in this list of ETFs that can potentially be used to build a "momentum" style portfolio.  What I've done is to include the 18 ETFs from the Feynman Study, add four sector ETFs that currently outperform both SHY and VTI, and included a few options that might be useful in a bear market.  If you missed some prior references related … [Read More...]

200 Level

Portfolio Performance – 14 January 2011

  Portfolio Performance Below is the Portfolio Performance data table for this week.  Overall, the seven updated portfolios gained a little ground on the benchmarks as well as the SR and RR return/risk ratios.  In one case, the portfolio pulled ahead of the benchmark, but showed a decline in the SR and RR values.  That event is rather unusual, but it does occur.  … [Read More...]

Preparing for Retirement: Avoid the Dunning-Kruger Effect

A few days ago I came across an article on the psychology of investing over on the Portfolioist blog.  The article is written by Daniel R. Solin, author of "The Smartest Portfolio You'll Ever Own." Readers will recall that I analyzed some of the portfolios from the Solin book here on ITA Wealth Management.  When I read articles of how our brains can get in the way of … [Read More...]

400 Level

Reducting Risk With The Euclid Portfolio

The 12th of the month is the day to closely examine each ETF used to populate the Euclid Portfolio, one of ITA Risk Reduction model portfolios.  While the markets have several hours before they close, it is highly unlikely any of the ETFs will change positions with their respective 195-Day Exponential Moving Averages (EMAs).  Here is the process I went through in my examination of the … [Read More...]

Risk

Portfolio Risk Risk is a messy word as it carries so many different meanings in the investing world. Here are at least three meanings of the term. 1. Committee members giving oversight to an endowment fund may define risk as follows. Will the endowment fund grow sufficiently to best inflation, grow a little, and still be able to throw off 5% to find their institution? That is asking a lot of a … [Read More...]