100 Level

What Should I Do If I Am Holding Cash?

What should I do if I am holding cash?  Is it time to move back into the market, and if so, how should I proceed?  Those are difficult questions considering the S&P 500 (VFINX) increased in value by 87.4% since January 20, 2009.  If one were to follow the Louis Rukeyser analysis, moving immediately into the market is the correct decision.  However, Rukeyser was using data … [Read More...]

Learn By Example

If your learning style is parallel to mine, it is much easier to learn by example vs. straight theory. While it is important to know and understand the logic behind an investment philosophy, it is even better to see the policy in action and observe how well it performs. That is what motivates me to write the ITA Wealth Management investment blog. This is an investment education blog. 1) How do … [Read More...]

300 Level

Professionally Managed Portfolio vs. Self-Managed Portfolio

Managed Index vs. Self-Managed Portfolio   The following material is not available for publication elsewhere on the Internet. I suspect many of us consider finding a good financial advisor to manage our portfolios so we have one less chore to attend to.  Others get enjoyment managing their assets.  I’m trying to manage my portfolio so my spouse, who takes no interest in … [Read More...]

Charles Ellis: Revisit Loser’s Game of Stock Picking

Let's revisit* Charles D. Ellis' 1995 paper, "The Loser's Game," where he describes his Break-Even Return (BER) equation. Here is a review of this equation. * I checked the readership of this blog and only nine readers picked up this information.  That is too few so I am bringing this material forward in hopes more folks will walk through the math to see the importance of cost when operating a … [Read More...]

200 Level

Portfolio Performance: 12 August 2011

Asset Allocation wins again.  The following data table is what ITA Wealth Management is all about.  It is about setting up a Strategic Asset Allocation plan, following through with a passive style of investing, and monitoring the results to see how well the portfolios compares with their benchmarks. While few folks expected to see absolute gains over the last week to ten days, in such … [Read More...]

Einstein Portfolio Review

Last week I added a few shares of RWX, VWO, and EMB to the Einstein to bring a few asset classes into balance.  Other than the Bonds & Income asset class, this portfolio is now in balance. One Tactical Asset Allocation I will be making is to shift one percentage point from Small-Cap Growth over to Small-Cap Value.  i will use IWN for my Small-Cap Value ETF.  Another change is … [Read More...]

400 Level

ETF Analysis Using Technical Indicators

The following ETF evaluator is a relative new development so be wary of the results until more data is available.  It is important to note that not every ETF in the following table was updated.  Only VWO, RWX, VFH, IDV, and EPP are current.  As you look at the far right-hand column, you will see that no ETF is considered a buy under the current conditions. The best prospects at … [Read More...]

International ETFs: Priced to Buy?

Approximately once a month I post the "Delta Factor" projections for a list of international ETFs.  Below are two sets of data.  One covers a three-year period and the second expands to four years.  What is the outlook over the next six to twelve months if we use this type of probability projection?  In the following tables I use two different time frames.  The … [Read More...]