100 Level

Five Basic Rules of Investing

  Basic Rules of Investing A Review   Rule #1: Think through why you are setting up a portfolio.  What are your goals?  Develop a Portfolio Policy. While there are many sub-rules within this fundamental rule, at least begin with some sort of Strategic Asset Allocation plan.  Many are given as examples on this blog. The planning stages requires reading, and I … [Read More...]

Winter Solstice Arrives On Pacific Coast

Winter Solstice The Winter Solstice occurs at 3:12 AM PST. "Sol" refers to the Sun and "stice" means to stand still. Each day before the Winter Solstice the Sun appears a little lower in the sky at noon. The Sun’s altitude at Noon on the Winter Solstice, as seen from the Portland area, is approximately 21 degrees above the southern horizon.  After the Winter Solstice the Sun appears a little … [Read More...]

300 Level

Staying On The Right Side Of The Market With A Ten ETF Portfolio

Remaining on the right side of the market is critical to reducing portfolio risk.  Platinum members should be well aware of the ITA Risk Reduction model, our first line of defense.  Remember Faber's axiom that ETFs are more volatile when they are priced below the 200-Day Simple Moving Average.  Here at ITA we use a faster EMA, but the difference is not significant and the … [Read More...]

Bond Bubble: TAA Changes Required

Tactical Asset Allocation for Bonds Over the last few months I've been reducing holdings in bonds and treasury ETFs.  Reduction in ETFs such as BND, HYG and TLT is not a permanent change, but one I am making due to inflation pressure and the very low interest rates.  Decreasing the asset allocation to bonds and income falls under an active management decision called Tactical Asset … [Read More...]

200 Level

Setting Up a New Portfolio

Whether one is a beginning or experienced investor, a respectable portfolio can be constructed using the following 27 ETFs.  These ETFs are available commission free to TDAmeritrade clients.  While there are 27 ETFs available, it is not expected all would be part of the portfolio at any one time.  Currently, only 13 ETFs are recommended with the current conditions. This material is not … [Read More...]

Optimized Mosaic Portfolio

While the following portfolio is not exactly one of the eleven portfolios tracked here at ITA Wealth Management, there are many similar ingredients.  To create this portfolio I selected 26 ETFs that are frequently part of at least one ITA portfolio.  Familiar ETFs such as VTI, VEU, VWO, DVY, VTV, IWN, VOE, VOT, VNQ, RWX, etc. are among the 26 ETFs.  Nine (9) bond ETFs were in the group, but most … [Read More...]

400 Level

Risk-Parity: A Brief Explanation of How Risky a 60/40 Portfolio Really Is

While I have a sample Risk-Parity portfolio coming out early tomorrow morning, I want to rush out a brief description of how risk is calculated.  This not for the mathematically squeamish, but the concept is not difficult if one can get past one step in the logic.  Don't be surprised if this concept does not alter how portfolios are put together here at ITA Wealth Management.  … [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...]