100 Level

Solving Investment Problem #3: I don’t know the language.

Bringing a beginning investor up to speed with the investing vocabulary is not an easy task.  This problem does not have a quick solution.  However, it is made much easier if one takes the path of passive investing vs. active investing.  There is much less to learn and the fundamentals are quite basic.  Here at ITA Wealth Management, our preference is passive investing through … [Read More...]

Sample Portfolio

In response to a request from a Platinum member, I ran the following analysis of seventeen investments with the associated percentages.  For assumptions, I used the most recent three years of data and I projected the S&P 500 would return 7.0% over the next year.  As readers can see, the projected return is 7.2% or a little higher than we expect from the S&P 500.  The … [Read More...]

300 Level

ITA Rebalance Spreadsheet Available To Platinum Members

As mentioned in a comment, I have a new spreadsheet available for Platinum members who are not inclined to learn how to use the ITA Spreadsheet, but would like a way to set up a Strategic Asset Allocation model with guidelines for rebalancing.  Hence, the development of the ITA Rebalancing spreadsheet. Here is the link. … [Read More...]

Maintain Control of Portfolio

It is so easy to add bits and pieces to a portfolio to where it is out of control.  Several of the portfolios I track are in or getting close to this condition.  What happens is that an investor picks up information on a stock or ETF that appears too good to be true and that investment is added to the portfolio.  Sometimes the addition is in such a small percentage that it will … [Read More...]

200 Level

QPP Analysis of Faber Ivy Ten Portfolio

Yesterday I analyzed the Faber-Richardson Five portfolio found in The Ivy Portfolio.  In this post, Platinum members will find the QPP analysis of the Faber-Rickardson Ten.  I used the same five-year time frame so readers can compare the two results.  Improvements and negatives come with this expanded portfolio. While the projected return moves up to 8.2%, we give up risk as the … [Read More...]

Active vs. Passive Investing: Part 5

The author of the Active vs. Passive Investing Returns: Does Passive Outperform? paper begins Section Five with this statement.  "Other research supporting the conclusion that passive investing outperforms, comes from analysis of pension plan returns.  Although slightly different, pension plans have most of the same problems as mutual funds.  They are only a subset of the … [Read More...]

400 Level

Delta Factor: Three-Year Analysis Projects Grim Market Ahead

Yesterday I uploaded a "Delta Factor" data table using four years of historical data.  Today I am posting another table.  I added a few ETFs, but the main difference is that I am using three instead of four years of historical data.  Note the major difference in the projections for the future.  All the red is due to the analysis beginning with the market in steep … [Read More...]

Bonds: Are Any Worth Buying Based on “Delta Factor” Projections?

Bond Projections Look Dim Periodically a "Delta Factor" projection is posted for equities and bonds.  Today I am updating the projections for a wide array of bond ETFs and the outlook is not strong as one can see from the table below. … [Read More...]