100 Level

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...]

The Asset Allocation Decision

  There are researchers who conclude that the asset allocation plan is the most important decision an investor will make when constructing a portfolio. It is my contention that the percentage allocation to the asset classes is the most critical decision. The most recent research I've read on this subject indicates that asset allocation is important, but not quite so important as stated … [Read More...]

300 Level

ITA Index: Making It Work

Building a Customized Benchmark Serious investors monitor and measure the performance of their portfolio(s).  Otherwise, how is one to know if portfolio decisions are adding or subtracting alpha.  Portfolio decisions include market timing, asset allocation, selection of stocks, index funds, ETFs, mutual funds, and professional money managers.  Measuring performance is a … [Read More...]

Preparation for Einstein Portfolio Review

Next week the Einstein is up for review and here is the pre-update picture for this portfolio.  We first start with the Efficient Frontier graph, them move on the the Rankings table, and finally the Buy-Hold-Sell recommendations. This information is not available for publication elsewhere on the Internet. … [Read More...]

200 Level

Kenilworth Portfolio Review: 19 December 2011

Since the Kenilworth Portfolio is lagging its VTSMX benchmark, I am paying closer attention to the asset allocation.  In addition, the Kenilworth is a candidate for the ITA Risk Reduction model.  Checking moments ago, all critical ETFs with exception of domestic REITs (VNQ) are priced below their respective 195-Day EMFs.  No limit orders are in place for the Kenilworth and we are in … [Read More...]

Retirement Portfolio: Part Five

If one is willing to add a few individual stocks to a sample retirement portfolio, what does the allocation look like when optimized?  In the following portfolio I added several ETFs to what one might consider the basic group.  These include SLV, DVY, and IDV where the latter two are dividend generators. Special Note:  The assumed growth rate of the S&P 500 was lowered from 7.0% to 6.0% for … [Read More...]

400 Level

NASDAQ: Watching The Signals Move Together

What are the connections between technical indicators such as Point and Figure (PnF), Exponential Moving Averages, Relative Strength Indicator (RSI), Moving Average Convergence Divergence (MACD), and Chaikin Money Flow (CMF)?  Platinum readers have seen many graphs of all but the PnF variety.  Do these technical signals reinforce each other so we can reduce portfolio risk.  Keep in … [Read More...]

Bullish Percent Indicators Shift Into High Gear

Both the broad markets and individual sectors went on a tear this past week based on the Bullish Percent Index (BPI) changes.  Platinum members will see the results of the various indexes in the first table and the individual sectors in the second. The following information is not for publication elsewhere on the Internet. … [Read More...]