100 Level

Move Out of Actively Managed Mutual Funds – NOW!

Whether you are holding actively managed mutual funds as a result of your own decisions or are locked it through your companies saving plan, do everything possible to extricate yourself from these funds and move into non-managed index funds or non-managed ETFs.  If you are not sure why I pass on this advice, you only need to read Richard A. Ferri's book, The Power of Passive … [Read More...]

Commodities: Second Thoughts On DBC

ITA Wealth Management readers know I am highly aware of costs and do everything to keep them low.  This includes seeking out commission free ETFs and one example is DBC, a commission free ETF available through TDAmeritrade.  However, the expense ratio of DBC is a very high 0.85% or 85 basis points.  Yes, it costs more to run a commodity ETF, but is this reaching the breaking point. … [Read More...]

300 Level

TEVA: A Stock Worth Further Examination

This past weekend I was running my dividend stock screening program to see which companies passed the screen.  Then I recalled that I once had a "valuation" screen that looked for companies that were priced under numerous valuation parameters as laid out in the Stock Investor Professional, AAII's stock screening program.  Here are the valuation parameters I used for my screen, in addition to the … [Read More...]

Portfolio Performance: 12 August 2011

Asset Allocation wins again.  The following data table is what ITA Wealth Management is all about.  It is about setting up a Strategic Asset Allocation plan, following through with a passive style of investing, and monitoring the results to see how well the portfolios compares with their benchmarks. While few folks expected to see absolute gains over the last week to ten days, in such … [Read More...]

200 Level

QPP Analysis of Another Low Risk Retirement Portfolio

The nexus for the following portfolio begins with this Seeking Alpha article and the follow-up QPP analysis of a portfolio suggested by a SA reader.  A link to the second analysis can be found here.  And now we come to the third portfolio in this series of low risk retirement plans.  This last set of ETFs was suggested by a reader of the ITA blog. The four ETFs that make up this … [Read More...]

Active vs. Passive Investing: Part 10

Section Ten of the Active vs. Passive Investing paper begins with this quote.  "Show me a system that will consistently outperform the index...then we'll see."  The author has it correct - there is no such system, particularly for active investors.  Index or passive investors are asking the wrong question if they are looking for active investors to come up with a … [Read More...]

400 Level

Effectively Using Probability Arguments

If you are not already familiar with the concept of "Delta Factor," (DF) do a search for the term or look under technical analysis.  The reason for bringing DF up has to do with the possible benefits of using the concept or information to a greater degree than I've done in the past.  I've been watching many asset classes via individual ETFs to see how they … [Read More...]

“Delta Factor” and Market Inflection Points

To acquire additional background on the "Delta Factor" use the search engine located in the sidebar of ITA Wealth Management.  Some of the blog posts require Platinum membership to read all the information.  In this blog post I examine a group of ETFs using three time intervals.   Here are the intervals for analysis 3/31/2006 - 3/31/2009  (Looking forward, … [Read More...]