100 Level

Keeping Portfolios Simple

Three Sample Portfolios Complicated portfolios discourage investors and that is why I am attempting to simplify the portfolios tracked here at ITA Wealth Management.  There are many examples of possible portfolios in the literature, particularly in books by Faber-Richardson, Swensen, and Bernstein.  Let's start with one of the simple portfolios laid out by David Swensen. While Swensen does not … [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...]

300 Level

Kenilworth Portfolio Update: 21 June 2011

Kenilworth Review Yesterday was the scheduled time to review the Kenilworth, one of the young portfolios tracked here at ITA Wealth Management.  Since the last update, a deposit of $500 was added to the portfolio and a few shares of International REITs (RWX) were purchased.  This is the first addition of international REITs in the Kenilworth. We are still working this portfolio into … [Read More...]

List of Dividend Stocks

Investors looking to build a portfolio from stocks that show continual growth in dividends will find the following list of interest.  From this long list I add a few more screens and the three stocks that pass these additional screens are identified below. Readers are reminded that well over 95% of the investments in ITA Wealth Management portfolios are invested in non-managed index ETFs.  … [Read More...]

200 Level

Portfolio Performance Update: 5 March 2013

Nearly two months passed since I last updated the portfolio performance data table.  I'm not trying to hide anything.  Instead, I've been working on other projects such as portfolio optimization.  Since the last review the U.S. Equities market has been on a tear.  In context my comments below need to reflect the fact that not all February dividends are recorded in the following data and none of … [Read More...]

Retirement Portfolio: Part Three

Part three of this series of retirement preparations shows how one might optimize the array of ETFs presented in the earlier two blog posts.  In the following screen shot I set up a number of constraints and one was to hold the Diversification Metric to the 40% standard.  I also included BND, Vanguard's Total Bond ETF in the mix of investments.  Even by forcing none of the bonds to hold more than … [Read More...]

400 Level

Delta Factor: Second Draft

Below is the second draft of additional Delta Factor calculations.  As one can see from this table, the trends or signals arrive early.  I'm still not satisfied with the algorithm used to generate the Buy, Hold, and Sell signals for these ETFs. Note the dramatic shift between 9/15/2008 and 10/15/2008.  When I see something like this I recheck my figures. … [Read More...]

StockChart Graphs for Timing Model

Platinum members following the experimental approach to improving performance of the Maxwell and Euclid portfolios will want to become familiar with the StockChart graphs we will be using for our analysis.  Below is an example of the graphs for VTI, one of the primary holdings. In the top graph, note that the current price is well below the 195-Day EMA (green line).  The price closed at … [Read More...]