100 Level

Ten Biggest Investor Mistakes – # 9

  Wealth Management – Mistake #9: The small investor constructs portfolios without educating themselves as to what constitutes well-diversified investments.   Most advisors and money managers focus on the selection of individual stocks while ITA Wealth Management concentrates on the development of the broad portfolio plan. If you are new to this blog, (or the old blog at this … [Read More...]

Grandchildren: Seek the Best Education Possible

Photograph: Bay at Le Havre, France It is difficult to over emphasize the importance of a good education.  In our family there was never any discussion about whether or not we were going to college.  It was a given.  My father set the standard when he desired an education so much that he not only paid his way through college, but he also paid to have someone replace him on the … [Read More...]

300 Level

Annaly Capital Management (NLY): Little to Offer Except High Dividend

What does Annaly Capital Management (NLY) have to offer other than a high yield of 12%?  Sales, profits, and earnings are erratic making it difficult to perform any sort of useful analysis.  Check the screenshots below. Not for publication elsewhere on the Internet. Page 1:  Looking at the graphs one would think they are at Six Flags amusement park.  While it is difficult to make any sort of … [Read More...]

Market Conditions of Concern

Market Worries Two days ago I wrote a piece on Technical Analysis and how the market is overbought.  This morning I ran into a related column and the reference is provided below.  The concern is tied to mounting oil prices.  Not addressed in the article is the assault on jobs at the state level.  If the the widespread cuts continue, Ben Bernanke predicts future growth could … [Read More...]

200 Level

Asset Classes: How Many Should You Own?

With much recent attention given to answering the money managers most perplexing question, what percent of the portfolio should be invested in each asset class, the whole idea of how many asset classes to include in a portfolio has been neglected.  William Bernstein answers the question this way.  "You might as well ask the meaning of life.  About all one can say is, more than three."  The major … [Read More...]

Value Oriented Portfolio

Last evening a value oriented portfolio was mailed to me so I thought I would run it through a Quantext Portfolio Planner analysis.  Unfortunately, three of the thirteen ETFs have "short records."  This simply means the data does not extend back a minimum of three years. The ETFs with limited data are: MGV, VXUS, and VSS.  Nevertheless, here are the results. To view this … [Read More...]

400 Level

Possible Enhancement of ITA Risk Reduction Model

Is it possible to improve on the basic ITA Risk Reduction model?  Of course it is, but the question that immediately comes to the fore is how complicated does one want to get when it comes to reducing risk.  To review the original ITARR model, click on this link.  Once readers have the basic ITARR model in mind, take a look at the StockCharts graph for the VNQ ETF as shown below. … [Read More...]

Containing Portfolio Risk

It will be a close call for many asset classes held in the Madison Portfolio when it comes up for examination on Wednesday of this week.  Developed international markets (VEU) is just one example of the narrow gap between the price of the ETF and its 195-Day Exponential Moving Average (EMA).  While most of the asset classes have a cushion before a sell signal is given, several of the … [Read More...]