100 Level

Solving Investment Problem #3: I don’t know the language.

Bringing a beginning investor up to speed with the investing vocabulary is not an easy task.  This problem does not have a quick solution.  However, it is made much easier if one takes the path of passive investing vs. active investing.  There is much less to learn and the fundamentals are quite basic.  Here at ITA Wealth Management, our preference is passive investing through … [Read More...]

Investment Advisor: Should You Use One?

Remember the little investment book, "The Investment Answer" written by Daniel C. Goldie and Gordon S. Murray and the five critical decisions each investor needs to make as they begin the journey of investing?  You recall that decision number one was the Do-It-Yourself Decision.  Goldie and Murray advocated finding a fee based investment advisor to help with the hard … [Read More...]

300 Level

Maxwell Portfolio Update

As long-time Platinum members know, the Maxwell is one of the five original portfolios to participate in the ITA Risk Reduction (ITARR) model project.  More recently I expanded the ITARR model into the Momentum-Optimization Model (MOM) and these moves to reduce risk are beginning to show positive results.  Over the last month the Maxwell's Internal Rate of Return (IRR) picked up 150 basis points … [Read More...]

Return/Risk Optimization of Harry Browne’s “Permanent Portfolio”

The "Permanent Portfolio" developed by Harry Brown leaves quite a bit to be desired when one optimizes for the highest Return/Risk ratio.  The four ETFs selected for stocks, bonds, gold, and cash are VTI, BIV, GTU, and SHY respectively.  There are other choices to represent these asset classes, but these four are the ones I selected for this analysis. … [Read More...]

200 Level

Why Do Amateurs Continue To Try When Professionals Fail?

Seeking Alpha is the scene of a debate around the viability of the Efficient Market Hypothesis (EMH).  Before going very far into this topic, please keep in mind that we don't want this information to be scattered very far in the world of investing as we want active manager to keep throwing those $20 dollar bills on the ground so we as passive managers can come along a scoop them up for … [Read More...]

Dividend Portfolio

Looking for a low risk dividend portfolio?  Check out this portfolio sample that I posted over on Seeking Alpha.  There are a number of positive features to this portfolio.  First, it meets all the QPP analysis goals as laid out in the article.  Second, it provides good diversification without too many ETFs. There is a negative or two.  If one is using this array of … [Read More...]

400 Level

Bullish Percent Indicators Show A Few Changes

Several indexes and one sector showed weakness this week.  Nevertheless, many markets are still reading above 70% or are positioned in the overbought region.  … [Read More...]

Watching Prices and 195-Day EMAs

I've been tracking or at least observing the prices of the eight critical ETFs and their respective 195-Day Exponential Moving Averages (EMAs) and was relieved to see the upticks today. The Madison is up for review this weekend and based on the closing numbers, I can place this portfolio on automatic pilot for another month.  That leaves the Gauss to be evaluated at the end of the … [Read More...]