100 Level

Why Use Index Funds?

The Power of Index Investing Why are 80% to 85% of all investors wrong?  Could it be the power of advertising and greed?  What do I mean when I say a high percentage of investors have it all wrong?  Simple!  The majority of investors build their portfolios by selecting individual stocks.  While we do not find fault with investors who want to add a few highly selected … [Read More...]

Portfolio Construction the ITA Way

David Swensen writes in his "Unconventional Success" book, "Construction of a financial-asset portfolio involves full measures of science and art.  The science encompasses the application of basic investment principles to the problem of combining core asset classes in an efficient, cost-effective manner.  The art concerns the use of common-sense judgment in the challenge of incorporating … [Read More...]

300 Level

Mosaic Portfolio Lookback – 31 March 2008

Moving from January of 2008 on to the end of the first quarter in 2008, what is the Mosaic Portfolio projecting?  The following QPP analysis continues to show strong returns and low volatility.  This gives rise to an above average Return/Uncertainty ratio of 0.66.  Remember that anything above 0.60 meets the desired target.  The diversification metric and portfolio … [Read More...]

ITA Ratio Video/Audio Clip

Here is another help session for users of the TLH spreadsheet.  This clip provides additional explanation of how to introduce the ITA Ratio, a new performance bar for index portfolios. … [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...]

Aggressive Growth: Portfolio #6

The Aggressive Growth Portfolio is the last in this series of sample portfolios.  We moved from the Ultra Capital Preservation where bonds and income ETFs made up the majority of the portfolio to this example where the bond asset class is peeled down to a mere 6% of the total portfolio. Platinum membership available for a low $5.00 per month.  This last sample portfolio in the … [Read More...]

400 Level

Bullish Percent Indicators for 11 January 2013

Overall, most of the indexes and individual sectors showed strength this week when measured by the Bullish Percent Indicators.  The following tables speak for themselves.  Offense definitely dominates both the broad indexes and the specific sectors of the market. … [Read More...]

ITA Risk Reduction Update

Where do we stand with ETF prices and their respective 195-Day Exponential Moving Averages?  As I am updating all the portfolios this month, I am paying close attention to the five (Maxwell, Euclid, Madison, Kenilworth, and Gauss) portfolios to see if changes are necessary based on the ITARR model.  I checked all the primary ETFs used to populate the asset classes and all are priced above their … [Read More...]