100 Level

Equity Markets: Overbought or Oversold?

Market Condition It is not unusual to be asked, is this a good time to purchase stocks, index funds, or ETFs? Is the market over valued or under valued? While there are always individual stocks in either camp, the question today is a broad market query. One indicator I use to answer the question is the Relative Strength Indicator (RSI) graph for the Vanguard Total Market Index ETF, VTI. Below is … [Read More...]

Registration Issues

A few Platinum subscribers are having problems accessing the reserved content on this blog and it is likely due to not cleaning up all former subscriptions on PayPal. … [Read More...]

300 Level

What Happens When We Substitute VYM For Individual Stocks

The question was raised in a comment - What if one uses VYM instead of the six individual stocks as recommended in the Seeking Alpha article?  Using the same 60 months of historical data for the analysis and the same projections for the S&P 500, below is the QPP analysis where 18% is allocated to VYM as a substitute for the six individual stocks. The projections are not as strong when … [Read More...]

Manage Your Own Money

  Should you hire a money manager or do it yourself?  Consider the following assumptions and arguments. 1.  As the first given, the portfolio belongs to you, not the hired money manager.  This is an obvious, yet important point. 2.  Assume the advisor fees amount to 100 basis points or 1%.  Fees may be lower, but for ease of calculation, I will use the 1% … [Read More...]

200 Level

Asset Allocation: High Risk Portfolio

The following high risk portfolios is the fifth portfolio plan in this series that began last week.  No bonds are included and readers can see what this does to the projected standard deviation value.  Pushing the SD over the 20% mark certainly qualifies as a high risk portfolio.  In the current market, our goal is to bring the projected SD down to something below 15%.  Even … [Read More...]

Portfolio Performance: 21 January 2012

This was a good week for most of the portfolios.  Not only did we see absolute gains, but relative improvement as well.  The majority of the portfolios gained a little ground on either the ITA Index, the VTSMX benchmark, or one of the three uncertainty measurements. The exaggerated figures related to Gauss are to be expected as this is a young portfolio.  Annualized calculations … [Read More...]

400 Level

ITA Risk Reduction Model Rules

There are two levels to the ITA Risk Reduction model.  Below are the two sets of rules for the ITARR model.  For both levels, we only examine the investments once per month. … [Read More...]

Bullish Percent Indicators: Four Switch Positions

Bullish Percent Indicator (BPI) information is a relatively new addition here at ITA Wealth Management.  It is another investment arrow we are including in our investment quiver.  A major change I made this week is to move from an arithmetic measurement of the box size to a log or percentage scale for calculating the box size.  Just as it makes sense to calculate portfolio increases … [Read More...]