100 Level

A Random Walk Down Wall Street: 10th Edition

Burton G. Malkiel's "Random Walk" Book Every investor should have "A Random Walk" on their bookshelf, ready to pull off, read, review, study, and read again.  Burton Malkiel gets it right.  Build the core of the portfolio using index funds or index ETFs.  If you want to sprinkle a few individual stocks into the mix, go ahead.  That is where the … [Read More...]

Why The Next Twenty Years Will Not Likely Repeat The Market From 1982 – 2000

Investors who participated in the Great Bull Market from August of 1982 through March of 2000 are not likely to witness a repeat of that market for another two decades, if not longer.  Why the pessimistic position?  Here are the reasons as I see them. Demographics:  With 10,000 "boomers" retiring each day, downward pressure is placed on stocks as retirees withdraw … [Read More...]

300 Level

Holy Grail Portfolio Revised

Revising the "Holy Grail" portfolio is an extension of the blog entry posted earlier today.  The following QPP analysis is somewhat constrained by two new corporate bond ETFs (VCIT and VCLT) that have not been in existence three years.  Nevertheless, Platinum members will find this portfolio of interest.  The broad guidelines for putting this portfolio together is as … [Read More...]

“Creme List” of Dividend Stocks

ITA Wealth Management readers know the pitfalls when it comes to selecting individual stocks and populating a portfolio with nothing but stocks.  Nevertheless, from time to time I post a list of stocks that ITA readers may find interesting.  Here is that list of stocks. The following screen and list of companies is reserved for Platinum members only and may not be published elsewhere. … [Read More...]

200 Level

Asset Allocation: The Mortar of Portfolios

Asset allocation is a subject frequently mentioned here at ITA Wealth Management.  For many beginning investors, it is a new topic, yet so familiar to the investing world it is assumed everyone knows what it means.  This blog post is to show a sample asset allocation plan and explain some of the reasons why it is set up as it is.  Here we have a Dashboard worksheet extracted from … [Read More...]

Asset Allocation: How Important Today?

Asset Allocation Due to a recent Ibbotson study (Unfortunately, this article now requires one to register.) asset allocation is not the investment elixir today it was thought to be in the late 1980s and 1990s. Nevertheless, it remains the best method for constructing portfolios if the goal is to outperform a broad market benchmark index such as the VTSMX or ITA Index* while reducing portfolio … [Read More...]

400 Level

Seasonal Timing Strategy Update

Now that May is not far away articles and blog posts are springing up around the adage:  "Sell in May and go play" or "Sell in May and go away."  That is, play or stay out of the market until after Halloween.  I've written about this seasonal timing model myself, but is there anything to it?  After all, is the market not efficient?  If you Google Seasonal Timing Strategy a long list of articles … [Read More...]

Expecting Market Volatility and What To Do About It

If you need additional evidence that we are in a season of volatile markets, check out this Portfolioist article.  Recognizing that market ups and downs are not about to leave us very soon, what are some options available to investors?  How can we temper daily market moves of 2% or more?  Risk reduction is becoming more and more important. A few days ago, I had reason to pull … [Read More...]