100 Level

Commodity Holdings: DBC vs. DJP

Faber and Richardson recommend using DBC as the commodity holding in their five and ten ETF portfolios.  I favor DJP, an Exchange Traded Notes (ETN) as the commodity placeholder.  Readers can look up the difference between and ETF and ETN on the Internet.  How do these two commodity holdings compare over a time duration of interest.  Since commodities have a rather short … [Read More...]

Active Management: Ferri’s Five Negative Strikes

When I began investing there were no index funds.  The number of mutual funds numbered fewer than 300 and fund research was conducted by going to the library and requesting Weisenberger Mutual Fund Reports.  Mutual funds have multiplied like fruit flies and there are now well over 10,000.  Do we need this many?  Likely not. Let's look back 35 years to when there were … [Read More...]

300 Level

5 ETF Bond, REIT, & Gold Portfolio

Is it possible to build a portfolio that does not include U.S. stocks or international equities?  The following portfolio was suggested by a reader and it originates from a well-known author.  Here are the five ETFs that make up this conservative portfolio. 1-3 Year Treasury Bond (SHY) Intermediate Bond ETF (BIV) Emerging Market Bonds (EMB) Real Estate (VNQ Gold … [Read More...]

Portfolio Performance

Photograph:  Dome of Blue Mosque in Istanbul, Turkey If you hear someone come across a bit strong when it comes to portfolio performance, ask a few simple straight-forward questions. 1.  How is the performance measured and does it meet AIMR standards?  Professionals will know AIMR stands for Association for Investment Management and Research.  ITA Wealth Management readers … [Read More...]

200 Level

Beginner’s Portfolio

If just starting out as an investor, the following portfolio is a slight modification from the Faber-Richardson Ten Portfolio as published in their book, The Ivy Portfolio.  I replaced GSG, a commodity ETF with a gold ETF, GTU.  Instead of VB, I inserted IWN which provides a value tilt to the portfolio. This material is not available for publication elsewhere on the Internet. … [Read More...]

A Lesson from Gauss

Carl Gauss is considered by some as the most brilliant mathematician who ever lived.  He is sometimes called called the "Prince of Mathematicians."  I even named one of my computers after him.  One of his contributions is the Gaussian Distribution where real valued random variables tend to cluster around a single mean variable.  Does that sound like prices dancing … [Read More...]

400 Level

Improving On The Simple Nine Global ETF Portfolio

While there are advantages to keeping a portfolio simple, there are also disadvantages.  For example, one will miss opportunities by not including asset classes that have been shown by Fama and French to add value to the portfolio.  Namely, value asset classes such as small-cap value (VBR).  We don't want to eliminate asset classes just to keep the portfolio simple.  The Ranking data table shows a … [Read More...]

Bullish Percent Indicator: Six Risk Levels

Readers interested in digging deeper into Point and Figure (PnF) technical analysis will be served by purchasing Thomas J. Dorsey's book, Point & Figure Charting.  His latest edition is available in Kindle format, but I prefer this type of book in hardback as I want to easily bounce from section to section.  That becomes more difficult with a Kindle. A.W. Cohen is considered the … [Read More...]