100 Level

Pros and Cons of Index Investing

While scanning the Internet, I ran into this interesting post on the pros and cons of index investing. The writer covers many points we attempt to combat through our approach to portfolio construction and asset allocation. The author chides index investors for being too complacent.  We are anything but complacent and one way we avoid this problem is to accurately maintain and monitor … [Read More...]

Stock Screening Service Coming

While this blog is oriented toward using index ETFs to construct portfolios, some readers spice up their portfolios by adding a few stocks.  These are known as Mosaic investors.  To cater to Mosaic investors, I am adding a stock screening service.  Send me your criteria and I will run a screen.  Stocks that emerge from the screen will be posted for other Platinum readers to … [Read More...]

300 Level

Portfolio Management

Developing Portfolio Policy Portfolio management begins with a well considered Portfolio Policy. Basic portfolio plans include the following: Asset classes to include in the portfolio Percentage to invest in each asset class Investments to populate asset classes Portfolio monitoring method Projected return analysis Projected risk analysis Selection of appropriate … [Read More...]

Using the Delta Indicator

Quantext Portfolio Planner Expanded While I hope to have the following article published on Seeking Alpha, I am permitted to make it available to Platinum readers since it is not readily available free on the Internet.  Here is the article as I submitted it to SA.  Platinum members have see this expansion of the QPP analysis before, but I don't recall ever posting both extremes so … [Read More...]

200 Level

Portfolio Performance Data Table For Eleven Portfolios: 22 June 2012

After missing last week, here is the latest portfolio performance data for the eleven portfolios tracked at ITA Wealth Management.  Seven of the eleven gained ground on the VTSMX over the past two weeks and the other four held even.  Those that pulled ahead of the benchmark were: Curie, Newton, Einstein, Kepler, Bohr, Kenilworth, and Gauss.  Since I made some asset allocation … [Read More...]

Disadvantages of Passive (Index) Investing: Are There Any?

The arguments in favor of passive investing are far too compelling to completely ignore.  If there are any disadvantages, what are they? 1.  At one time the availability of passive or index funds were limited, particularly in certain asset classes.  Availability of index funds is no longer a problem as ITA readers know.  We can find an index ETF to fill every asset … [Read More...]

400 Level

Is It Time To Buy The Commodity, DBC?

The quick answer is, NO.  Why is it too early to move back into the commodity ETF?  Let me count the ways.  First, start with the PnF graph, shown in the first slide.  Today's big drop is shown with a 6 showing up in the right-hand column.  That 6 indicates DBC had another one box drop in June which means we are adding another O in this column.  Supply for DBC … [Read More...]

Risk Avoidance the Mebane T. Faber Way

Managing risk is a significant component of portfolio management.  We monitor risk through the Sortino and Retirement Ratios within the TLH spreadsheet, but we do not use the TLH as a technical analysis tool.  It is not designed to perform those functions.  This morning I pulled Matt Willson's article off Seeking Alpha.  Within the article is a reference to Mebane T. … [Read More...]