100 Level

Yield Trap

Beware of Yield on Purchase Price On occasion I read about someone receiving a high yield from a stock, only the value is falsely calculated. Instead of using the current price, the investor insists on using the purchase price for the yield calculation. Some years ago, Lowell Miller published a book based on this misguided calculation. Let me explain what yield based on original or purchase price … [Read More...]

Clark’s Fish Camp

If you are ever in Jacksonville, Florida, be sure to set your GPS to locate Clark's Fish Camp restaurant.  The food is excellent and the ambiance is "other-world."  Be prepared to wait an hour at prime time unless you have a VIP seating card.  In the main dining area are more stuffed animals than one is likely to see other than in a natural history museum. Over the … [Read More...]

300 Level

Sample Portfolio For Thirty (30) Year Old Investor

The following portfolio was passed on to me by a Platinum member as an example of a Strategic Asset Allocation plan for a thirty year-old investor.  Nine ETFs are used in this portfolio and many of the investment securities are familiar to ITA readers.  In fact, all nine Exchange Traded Funds can be found in one or more portfolios with exception of RWO.  RWO is a global real estate … [Read More...]

Tax Record Hint For ITA Spreadsheet Users

I'm in the process of going through the various taxable portfolios looking for stock and ETFs sales.  If an odd block is sold, one must record which ETF (or stock) was purchased and when.  Here is a hint as you go through your portfolio. 1.  I use First In - First Out records as that makes it simple.  That means first ETFs purchased are matched with first ETFs sold.  With the following hint you … [Read More...]

200 Level

Can Your Portfolio Survive The Next Bear Market?

The following SORDEX analysis is a variation of the material presented in the "Will I Run Out of Money?" blog.  Once more, I will use the 12-ETF Portfolio as the retirement portfolio.  As review, SORDEX is an acronym for Sequence-of-Returns Downside Exposure. Translated for T. C. PITS, it is a way to run several Monte Carlo calculations and see if you are likely to run out of … [Read More...]

The Permanent Portfolio Approach

The following comment generated this response.  The question is quoted so readers will follow the context of my post.  This is likely to be a long post so prepare yourself for some detailed information. "I would appreciate your comments on the following: I’ve been thinking about the Permanent Portfolio approach, and the Feynman studies; and possibly how to meld them together. First, about the … [Read More...]

400 Level

StockCharts for Basic Six

Readers who are following the ITA Risk Reduction model will note that only two of the "Basic Six" equity ETFs are currently above their 195-Day EMA.  Despite the market decline yesterday, VTI and VNQ held above the critical EMA.  IWN, VEU, VWO, and RWX either dropped below or stayed below their 195-Day EMA. To check your own holdings, go to this link for information. … [Read More...]

Risk Management of Portfolio

Will your portfolio survive a three sigma event that is likely to happen over the next ten years?  Check out this link to see a sample analysis. … [Read More...]