100 Level

Asset Allocation

Strategic Asset Allocation The backbone of any investment plan is its asset allocation. So says Richard Ferri in his recent book, "The Power of Passive Investing." Search of this topic on ITA Wealth Management and you will see I agree. There are two parts to developing an asset allocation strategy. First, one must decide how many and what asset classes to include in a portfolio. That … [Read More...]

Sellwood Bridge Movement Begins

Residents of Portland are interested in the move of the old Sellwood Bridge, one of many bridges that span the Willamette River.  Here is the link to what is going on. http://www.sellwoodbridge.org/?p=construction-camera The old bridge will be moved on to new pilings and will then be used while the new bridge is under construction for the next two years.  The old bridge will eventually … [Read More...]

300 Level

REGI: Analyzing a “Piotroski Stock”

In the prior post I listed the current "Piotroski Stocks" that met eight of the nine criteria.  REGI is one of the stocks that comes in with a High F-Score of eight (8).  What does an additional analysis of this stock look like?  Be aware that analyzing a "Piotroski Stock" will look a lot different from an analysis of PG, JNJ, or T. This material is not available for publication elsewhere on … [Read More...]

Merging The Swensen And Faber Portfolios

Swensen and Faber-Richardson Portfolios Merging the Swensen and Faber-Richardson portfolios is an effort to extract the excellent logic behind the "Swensen Six" portfolio and expand the number of asset classes as advocated in the "Faber-Richardson Ten" portfolio.  Parts of the logic behind the "Swensen Six" can be found in this Seeking Alpha article.  In … [Read More...]

200 Level

Asset Classes: How Many Should You 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 of life.  About all one can say is, more than three."  The major … [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

Momentum-Optimization Model (MOM) YouTube Presentations

Platinum members using the Momentum-Optimization Model (MOM) spreadsheet will find two help sessions at this address. http://www.youtube.com/user/Physlab Look for Momentum-Optimization and Momentum-Optimization Part 2.  Keep in mind that the resolution is not the greatest when viewing material on YouTube.  At least the Camtasia recordings are not as sharp as I prefer. Lowell   … [Read More...]

What Is The Meaning of Those X’s and O’s?

This morning a question was posed as to the meaning of the X's and O's in the PnF graphs.  One good source of information is StockCharts.  Another excellent source is Thomas Dorsey's book, Point & Figure Charting. The older and less expensive version will work fine. At the heart of PnF graphing is the law of supply and demand.  When the demand for a stock exceeds … [Read More...]