100 Level

Aristotle To Use VTI/TLT Ratio

Check this blog to see how the Aristotle Portfolio is going to be managed using ideas from Benjamin Graham. http://itawealth.com/2014/06/19/passive-investing-according-benjamin-graham/ If you have not recently checked out the upgraded ITA blog, check the URL under my name. Lowell http://itawealth.com … [Read More...]

Quotes from Charles Ellis

"It's not how good you are that counts, but how good you are compared with your competitors." "The really impressive characteristic of investment returns is that the variation in year-to-year rates of return on common stocks dwarfs the average annual rate of return on stocks." "Investment policy is the foundation upon which portfolios should be constructed and … [Read More...]

300 Level

SRCE and RBCAA: Two Dividend Stocks That Pass Screen

From a database of nearly 10,000 stocks, only two pass my current dividend screens.  SRCE currently provides a yield of 3.4% while RBCAA is generating a yield of 3.3%.  Below, Platinum readers will see an analysis of SRCE.  If this type of stock analysis is useful, let me know and if you have a stock you wish to see listed, send that along in the comments section. This information is not for … [Read More...]

5 ETF Bond, REIT, & Gold Portfolio

Is it possible to build a portfolio that does not include U.S. stocks or international equities?  The following portfolio was suggested by a reader and it originates from a well-known author.  Here are the five ETFs that make up this conservative portfolio. 1-3 Year Treasury Bond (SHY) Intermediate Bond ETF (BIV) Emerging Market Bonds (EMB) Real Estate (VNQ Gold … [Read More...]

200 Level

Active vs. Passive Investing: Part 10

Section Ten of the Active vs. Passive Investing paper begins with this quote.  "Show me a system that will consistently outperform the index...then we'll see."  The author has it correct - there is no such system, particularly for active investors.  Index or passive investors are asking the wrong question if they are looking for active investors to come up with a … [Read More...]

Repositioning Madison Portfolio

ITA Wealth Management readers checking the latest Portfolio Performance* data table will observe that the Madison Portfolio is lagging the VTSMX benchmark.  In an effort to push this portfolio performance to a higher level, I am going to employ the ITA Risk Reduction (ITARR) model, or the same one being used for the Maxwell and Euclid portfolios.  This will require selling some current … [Read More...]

400 Level

Sharpe Ratio: Why I Prefer the Sortino and Retirement Ratios

The Sharpe Ratio is a measure of return-risk for a portfolio or individual investment.  Like many concepts that lend themselves to mathematics, it is easier to understand what the Sharpe Ratio means if written in the form of an equation. S = (R - T)/Sigma    (My editor does not have the correct symbol for Sigma.) Developed by Stanford Professor, William F. Sharpe, the return … [Read More...]

ITA Risk Reduction Model Positions

Investors following the ITA Risk Reduction model are currently in "neglect" mode.  This simply means we are not trading any commission free ETFs, but we are watching the price action of several key markets.  Let's focus on two REITs to illustrate this point.  In our portfolios we include both domestic (VNQ) and international (RWX) REITs.  In the following graph we … [Read More...]