100 Level

Precious Metals and European Crisis

Precious Metals React Badly to European Crisis In times of economic uncertainty, a wise investor would hedge their market bets with silver and gold in hopes of a future payday. They would either buy precious metals in bullion and coins or invest in stocks related to precious metals, like mining stocks. Historically, precious metals are considered "safe havens" when the stock market may … [Read More...]

Index Investing Puzzles

Check out this interesting article titled, "The Weighting Game, and Other Puzzles of Indexing."  Here are the opening two paragraphs. "If we had hosted a panel discussion about active and passive investing 15 years ago, we would have titled it: "Indexing, Does It Make Sense, and If So, Why?" The burden of proof would have lain at the feet of the indexers. That's … [Read More...]

300 Level

“New Normal” Portfolio Analyzed

Long-time readers of ITA Wealth Management are familiar with the "New Normal" portfolio, a risk oriented portfolio developed by a Platinum member.  Following is an analysis of an approximation of the NN portfolio.  Approximate in the sense that several tickers were combined into one as the "Ranking Software" will not handle more than twenty investments in one run.  In addition I substituted XOM … [Read More...]

Momentum-Optimization Analysis of Equity Oriented Portfolio

Momentum-Optimization Analysis In the prior blog post I analyzed a sample portfolio using Quantext Portfolio Planner (QPP).  In this analysis I will use the momentum-optimizer spreadsheet to come up with the efficient frontier, a ranking of the securities, and the "decision maker," a Buy-Hold-Sell recommendation table.  We first take a look at the efficient frontier graph to see where the current … [Read More...]

200 Level

Portfolio Performance Data: 22 July 2011

How did your portfolio perform this last week?  Did you gain in absolute terms but lose the relative race?  Well, that is what happened to most of the portfolios tracked using the TLH Spreadsheet.  We lost most of the ground gained last week when examining the VTSMX and ITA Index benchmarks.  Nearly all the portfolios showed a decline in both the Sortinio and Retirement … [Read More...]

Stop Drinking Your Retirement

Practicing Self-Discipline This week I was in a meeting and to no surprise I witnessed at least one participant drinking bottled water. I kept quiet as it made no sense to offend anyone, but it did not stop me thinking - suppose one drank from the tap and saved the difference? What would that saving amount to over a lifetime? A quick calculation can be found at this bottle calculator site. It is … [Read More...]

400 Level

Effectively Using Probability Arguments

If you are not already familiar with the concept of "Delta Factor," (DF) do a search for the term or look under technical analysis.  The reason for bringing DF up has to do with the possible benefits of using the concept or information to a greater degree than I've done in the past.  I've been watching many asset classes via individual ETFs to see how they … [Read More...]

Hierarchy of Buy and Sell Decisions

Burlington Northern operating in the wide open spaces of the Northwest. Hierarchy of buy and sell decision is critical, particularly when the market is running at current high levels.  Here are some guidelines I use when it comes to rebalancing the portfolio or making buy, hold, and sell decisions. The following information is not available for publication elsewhere on the Internet. … [Read More...]