100 Level

Save Early

Photograph: Florence, Italy There is no better way to prepare for retirement than to save frequently and early.  The operative word is "early."  The Golden Rule of Investing is to "Save as Much as You Can as Early as You Can." William Bernstein, in his book, "Investor's Manifesto" puts it in harsh terms. "Each dollar you do not save at 25 will … [Read More...]

Motley Fools, Passive & Active Investing

Photograph:  Mt. Bachelor in Central Oregon If you need more evidence to support passive rather than active investing, here is another article on what is happening over on the Motley Fools web site.  In the 1990s, I was a regular reader of material on the Fools site. At the time is was the most popular investment web site to visit.  I devoured their popular book, "The Motley … [Read More...]

300 Level

Swensen Portfolio Plus Dividend ETF VIG

As suggested by one reader, I removed the individual stocks from the Swensen-Six Portfolio and added VIG, a dividend oriented ETF.  Below is the Quantext Portfolio Planner (QPP) analysis, correlation matrix, and "Delta Factor" projections when using five years of historical data.  One big advantage of using VIG instead of several individual stocks is one of simplicity.  … [Read More...]

Modified Momentum Investment Strategy

Instead of writing out a detailed explanation of how one might modify the Feynman Model (as presented in Part 5), I prepared a YouTube "Camtasia" to illustrate how one might use the Hoadley-HedgeHunter spreadsheet to manage a momentum oriented portfolio. … [Read More...]

200 Level

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...]

Setting Up a New Portfolio

Whether one is a beginning or experienced investor, a respectable portfolio can be constructed using the following 27 ETFs.  These ETFs are available commission free to TDAmeritrade clients.  While there are 27 ETFs available, it is not expected all would be part of the portfolio at any one time.  Currently, only 13 ETFs are recommended with the current conditions. This material is not … [Read More...]

400 Level

Delta Index Calculation #1

When Is It Time to Invest? Long-time readers of ITA Wealth Management are familiar with the Quantext Portfolio Planner (QPP) analysis and to a lesser degree the "Delta Index" worksheet I developed as an extension to QPP.  The jury is still out as to the predictive powers of the Delta Index.  Is it useful to any degree?  In the first screen shot below, I am showing what … [Read More...]

Bullish Percent Indicators Shift Into High Gear

Both the broad markets and individual sectors went on a tear this past week based on the Bullish Percent Index (BPI) changes.  Platinum members will see the results of the various indexes in the first table and the individual sectors in the second. The following information is not for publication elsewhere on the Internet. … [Read More...]