100 Level

Gordon Equation Revisited

Back on December 16, 2009, I wrote the following over on the old blog. Market Return = Dividend Yield + Dividend Growth Rate is known as the Gordon Equation. This simple equation provides a way to predict long-term stock market returns, and we need to emphasize long-term.  Quoting Bernstein from his “Four Pillars of Investing” book, page 57, “…the Gordon Equation … [Read More...]

Blog Notification Issue Tied to Plugin

Special notice:  The software used to send out notifications of new blogs is not working properly.  You have not been deleted from any mailing lists.  What happens is that plugins conflict with each other and one of my software programs designed to perform a particular task is likely in conflict with the notification plugin.  You might try signing up again or leave a … [Read More...]

300 Level

Kenilworth Portfolio Review: 20 September 2011

As mentioned in the middle footnote of News and Updates, the Kenilworth is scheduled for an update this week.  Since the last review, shares of VOT, VWO, RWX, and VUG were added to this portfolio in an effort to bring more asset classes into balance.  I also altered the asset allocation slightly by reducing bonds/income and increasing international REITs.  The yield is so high on … [Read More...]

Gauss Update: 14 December 2012

A number of Platinum members are tracking the Gauss and use it as a template for setting up for their own portfolios.  The Gauss is one of the ITA Risk Reduction portfolios and I'm also experimenting with Piotroski stocks.  Within the past thirty days I sold off CRAI as it dropped below the required Piotroski High F-Score of seven (7).  Currently, there are two Piotroski stocks in the portfolio as … [Read More...]

200 Level

Retirement Rule #6: Develop Your Own Strategic Asset Allocation Plan

Continuing the theme of retirement planning, at some point one needs to develop an asset allocation plan.  If you neglect this suggestion, you have already made a decision.  To make no decision is to make a decision.  One may as well set up a plan with some logic and reasoning behind the process.  To develop a SAA plan, one needs to understand the options available or Rule #5. There are a … [Read More...]

Portfolio Performance Data: 10 August 2012

As promised earlier in the week, here are the performance values for the eleven portfolios tracked on ITA Wealth Management.  Platinum members have access to all the transactions for eight of the eleven portfolios.  Detailed information is not available for the Maxwell, Euclid, and Madison portfolios.  If this data shows anything, it is how difficult it is to outperform the broad … [Read More...]

400 Level

Risk Defined

Portfolio Risk Risk is a messy word as it carries so many different meanings in the investing world.  In the most general sense, it means we don't know what is going to happen.  Here are several specific meanings of the term.  We will begin by defining "systematic" and "specific" risk. 1.  "Systematic" risk is risk we cannot avoid if we seek returns higher than the interest rates from a money … [Read More...]

Bullish Percent Indicators Take Hit

As projected for a number of weeks, the market finally took a breather and retraced this past week.  The evidence is clear when one examines the index and sector tables. Index BPIs:  We find every index below the 70% line or what we think of as an overbought condition.  While we are not rooting for the market to decline, we are well aware that it cannot maintain those lofty heights for an … [Read More...]