100 Level

High Fees Are A Problem

Three days ago I posted a link to The Portfolioist to draw your attention to how fees cut into your retirement account.  The American Association of Individual Investors (AAII) is also featuring this study.  Here is the AAII announcement that was sent out to subscribers on June 7th.       Dear Member, If you lost $155,000 to fees, how angry would you be? … [Read More...]

Gauss Portfolio Review: Risk Reduction Model Update

At the end of each month the Gauss Portfolio comes up for its ITARR review.  Over the past few days I had some concerns that one or more of the eight critical ETFs would be sold out of the Gauss.  Fortunately, this did not happen as the closing prices today showed each of the ETFs priced above their 195-Day Exponential Moving Averages.  We may find a different situation when the Maxwell is … [Read More...]

300 Level

Suggested Portfolio

A Platinum member sent in the following portfolio for a Quantext Portfolio Planner (QPP) analysis and evaluation.  In the following screen shots, readers will see the tickers, percentages allocated to each, the QPP analysis, and a three-year look at the "Delta Factor" projections.  For the following QPP analysis, I used three years of historical data and assumed the S&P 500 … [Read More...]

Gauss Portfolio Update: 19 July 2013

The Gauss is youngest among the stable of eleven portfolios tracked here at ITA Wealth Management and it is once more time to review this portfolio.  For new readers, each portfolio is reviewed or updated every 33 days.  Since the last Gauss review I sold shares from these ETFs: PCY, TLT, TIP, RWX, and JNK.  These sales pushed Bond and Income holdings down to 0.3% of the total portfolio.  The cash … [Read More...]

200 Level

Passive Investors

Passive Investing or Passive Management: Passive investing is the antithesis of active investing. Investors who subscribe to a passive style of investing do not think they can beat the market. Passive investors are strong advocates of the efficient market theory and that is – all information is reflected in the price of the product. While passive managers conclude they cannot beat the market … [Read More...]

Index Funds Advisors Asset Class Comparison: Examining The Big Return vs. Risk Picture

Index Funds Advisors Asset Class Comparison:  As promised yesterday, the third video talk from Index Funds Advisors is located at this URL.  Mark Hebner provides the large picture of the relationship between return and risk.  If you missed the first two presentations, go back to this blog entry to pick them up.  While you are on the IFA web site, I recommend each reader take … [Read More...]

400 Level

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...]

Point & Figure Scaling: Why Use Percentage Instead of Traditional Option

A situation arose this morning regarding whether X's or O's are showing up in the right-hand column of the Vanguard's emerging market ETF, VWO.  If the scaling is set to 'percentage' O's are found in the right most column.  However, if the scaling option is set to 'traditional,' X's show up in the right-hand column.  Which is preferred?  To … [Read More...]