100 Level

Disadvantages of Passive (Index) Investing: Are There Any?

The arguments in favor of passive investing are far too compelling to completely ignore.  If there are any disadvantages, what are they? 1.  At one time the availability of passive or index funds were limited, particularly in certain asset classes.  Availability of index funds is no longer a problem as ITA readers know.  We can find an index ETF to fill every asset … [Read More...]

New Normal Portfolio

              The New Normal (NN) is a view that developed with the bear market that has been articulated especially by Bill Gross and Mohamed El-Erian of PIMCO.  In summer of 2009 this blog pointed us to an article by Geoff Considine of QPP about some suggested asset allocations that could successfully navigate the NN.  … [Read More...]

300 Level

Portfolio Performance – 20 August 2010

For some reason, I expected to see greater decline in the Internal Rate of Return (IRR) values this week.  In a number of cases, the portfolios picked up a little ground on the performance of the VTSMX. Obviously, this is due to the broad diversity of the asset classes held in the portfolios. In a few cases, the ITA Index increased significantly and that is due to the addition of … [Read More...]

“Creme List” for August 5, 2011

Only sixteen stocks made the "Creme List" this week and we cut AMGN, SYY, and T from the list as they failed to show up in the elite group for 13 consecutive weeks.  No new stocks were added to the list this week.  Two companies are priced to "Buy" as indicated the the * adjacent to the position number. … [Read More...]

200 Level

Quantitative Approach to Portfolio Management

In the experiment to improve the performance of the Maxwell and Euclid portfolios we need a basic set of ETFs to form the core for our investments.  This quantitative approach is an outlier in our portfolio management philosophy as it has the potential for more trading.  For this reason, I will be using ETFs that are part of TDAmeritrade's 100+ commission free trades.  Below is … [Read More...]

Retirement Ratio: Portfolio Performance and Uncertainty Measurement

What is the Retirement Ratio (RR)?  I never heard of such a ratio, at least as it is defined below.  Before going into an explanation, let me digress and address similar ratios.  Portfolio performance measurements that combine both return and risk are readily available to investors.  The Sharpe ratio is perhaps the best known "efficiency ratio" where it measures the … [Read More...]

400 Level

Equity “Delta Factor” Probability Projections

Approximately once a month I publish either the "Delta Factor" probability projections for equity or bond ETFs.  Considering the recent strength in the markets it seemed like a good time to run the analysis again and see if there are any asset classes or ETFs that have a reasonable probability of performing well over the next six to twelve months.  You may be surprised at the … [Read More...]

Action Within Kenilworth Expected

Today is examination day for the Kenilworth and based on the price of several ETFs and their 195-Day Exponential Moving Averages (EMA), we anticipate picking up shares in asset classes that are under target. The two primary asset classes that need particular attention are emerging markets and international REITs.  Here are links showing the relative prices for VWO and RWX and their 195-Day … [Read More...]