100 Level

Manage Your Own Money

  Should you hire a money manager or do it yourself?  Consider the following assumptions and arguments. 1.  As the first given, the portfolio belongs to you, not the hired money manager.  This is an obvious, yet important point. 2.  Assume the advisor fees amount to 100 basis points or 1%.  Fees may be lower, but for ease of calculation, I will use the 1% … [Read More...]

What Is (Was) The Motivation For ITA Wealth Management?

What is the motivation for writing this blog? Here are a few reasons. I wanted to learn how blogs work, and there seemed no better way than to set one up. Writing this blog required me to dig into academic papers I filed away years ago.  Rereading a number of investment books is a side benefit. I wanted to pass on what I learned from over fifty years of investing. This investing … [Read More...]

300 Level

Updating the Sortino Worksheet

Platinum members will find a new Camtasia audio/video help session available for those TLH Spreadsheet users who are using the risk capabilities.  Here are the instructions to find the link. … [Read More...]

How Are Your Stocks Doing?

Using Morningstar and Yahoo-Finance to compare stocks and ETF performance. Here is an exercise that will prove informative to investors who construct portfolios using stocks. Follow these instructions. Make up a list of the stocks in your portfolio. Go to Morningstar and determine which asset class or style box each stock occupies. Type PAYX in the Quotes option and then scroll down the … [Read More...]

200 Level

Ranking Model Favors Small-Cap and Value ETFs

While the Quantext Portfolio Planner (QPP) software shows a high correlation between the "Big Nine" U.S. Equity asset classes, the Ranking Model, recently unveiled, shows a definite bias toward small-cap and value ETFs.  Below is the data table based on the latest three years of data.  To readers who are aware of the Fama-French research, this comes as no surprise. … [Read More...]

Passive vs. Active Investment Strategy

Using Morningstar and Yahoo-Finance to compare stocks and ETF performance.* Here is an exercise that will prove informative to investors who construct portfolios using stocks. Follow these instructions. … [Read More...]

400 Level

Condition of Risk Reduction ETFs

ETFs used in the ITA Risk Reduction model experiment include the following "critical" eight:  VTI, IWN, VEU, VWO, VNQ, RWX, DBC, and PCY.  If the market closes this afternoon close to where it is now, only DBC will reside below its 195-Day Exponential Moving Average (EMA).  VEU and VWO, both international ETFs, are hanging above the cross-over point by pennies.  We … [Read More...]

Bullish Percent Indicators Take Hit

As projected for a number of weeks, the market finally took a breather and retraced this past week.  The evidence is clear when one examines the index and sector tables. Index BPIs:  We find every index below the 70% line or what we think of as an overbought condition.  While we are not rooting for the market to decline, we are well aware that it cannot maintain those lofty heights for an … [Read More...]