100 Level

The Golden Rule of Investing

The Golden Rule of Investing is simply, “Save as much as you can as early as you can.” The operative word is early. William J. Bernstein lays it out in stark language in his book, “The Investor’s Manifesto“ where he writes, “Each dollar you do not save at 25 will mean two inflation-adjusted dollars that you will need to save if you start at age 35, four if you … [Read More...]

The Asset Allocation Hoax

Prominent asset allocation critic, William Jahnke, titled his 1997 attack on the Brinson et. al. (BHB) papers, “The Asset Allocation Hoax.” Jahnke’s criticisms of the two papers are many. He argues the authors do not focus on the proper problem, they report the wrong number, cost is not considered, and they give the wrong advice. To better understand the problem, here is 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 Not for publication elsewhere on the Internet.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...]

Launching a New Portfolio and Initializing ITA Index

Platinum readers know about the funding of the new ITA-RR portfolio. Since tomorrow is the last business day of the month (December) I will take a careful look at the price points for VTI, IWN, VEU, VWO, VNQ, RWX, and IGE and compare them with their respective 195-Day EMAs.  If nothing were to change tomorrow, on January 3, 2012, I will take out a full position in VTI, IWN, and VNQ.  … [Read More...]

200 Level

Portfolio Performance: 9 March 2012

Portfolio Performance:  The following table shows the performance data for eleven portfolios tracked here at ITA Wealth Management.  The ITA Index is a customized benchmark that one can develop within the TLH Spreadsheet.  The Sortino Ratio (SR) and Retirement Ratio (RR) are semi-variance calculations to determine portfolio risk or volatility. … [Read More...]

Ranking Vanguard’s Sector ETFs

One of the portfolios up for review this week is the Gauss.  In preparation for that update I'm looking for ways to improve the performance of this portfolio as it still lags the VTSMX benchmark.  I thought I would rank the Vanguard sector ETFs (minus VNQ) to see if there are any potential "momentum" ETFs among this group.  Below is the latest ranking. Sector Rankings:  The financial (VFH) ETF … [Read More...]

400 Level

The “Delta Factor” of International Markets

Using the last three years of data, what is the "Delta Factor" telling us about the international markets. Platinum membership is available for $5.00 per month. … [Read More...]

Bullish Percent Indicators for Market and Sectors Through 10 August 2012

Most broad market and sectors improved or remained static this last week.  All the major markets listed in the following screen shot maintained offensive control of the ball. Platinum membership is available for $5.00 per month. … [Read More...]