100 Level

Grandchildren: Cut Credit Card Debt

Photograph: University of Glasgow in Scotland Grandchild suggestion #2 is another form of suggestion #1.  Avoid credit card debt.  Pay off the credit card debt every month. It makes no sense to be paying out interest in excess of 10% while investments are returning less than that percentage. Getting into credit card debt is a financial tar pit.  Stay out. … [Read More...]

Madison Portfolio Review

Since the last Madison update 33 days ago, shares of TLT, RWX, and DBC were sold and the available cash was used to pick up shares of VTI - all in keeping with the Momentum-Optimization Model (MOM).  Of the eleven portfolios tracked here at ITA, the Madison is one of three where all the transactions are not available to Platinum members. Madison Dashboard:  The 26% allocated to international … [Read More...]

300 Level

Kepler Portfolio Review: 24 October 2011

Once more it is time to update the Kepler Portfolio.  Platinum members can see the Dashboard worksheet showing the asset allocation plan in the following screen shot. Note that both the Sortino and Retirement ratios are slightly negative.  The Internal Rate of Return (IRR) for the Kepler is trailing the VTSMX benchmark by 0.3%.  We should be able to make that up if and when the … [Read More...]

Low Risk Portfolio: Part II

A variation of the low risk portfolio posted yesterday is found below.  Since VCLT has a limited historical record, I removed it from the portfolio and added 5% through HCP, another dividend paying stock.  Both projected return and risk are a little higher in this portfolio as compared to the one posted yesterday.  Since the changes were so slight, the variations in the key metrics … [Read More...]

200 Level

Benjamin Graham and Index Funds

Benjamin Graham is considered by many to be the father of value investing.  For more information on one of his last conversations, go to this site. Interviewer:  Can the average manager of institutional funds obtain better results than the Dow Jones Industrial Average or the Standard & Poor's Index over the years? Graham:  No. In effect, that would mean that the stock … [Read More...]

Asset Allocation Example

In the table below, viewers see the asset classes discussed in a prior blog entry.  We are looking at fifteen asset classes, including Cash. In the second table the sample asset allocation is broken down into percentages and we cut out the Core holding, moving the number of asset classes to twelve. [Table=6] … [Read More...]

400 Level

Delta Factor After 400 Point Drop

ITA Wealth Management readers likely want to know what the Delta and Delta Factor projections are indicating after the 400 point drop yesterday.  The buying trend has started, although we still could be early in the cycle.  The reason I think we may be early is that it is not unusual for the Delta Factor to make projections a few months early.  Two time ranges are shown in the … [Read More...]

Momentum-Optimization Model (MOM) YouTube Presentations

Platinum members using the Momentum-Optimization Model (MOM) spreadsheet will find two help sessions at this address. http://www.youtube.com/user/Physlab Look for Momentum-Optimization and Momentum-Optimization Part 2.  Keep in mind that the resolution is not the greatest when viewing material on YouTube.  At least the Camtasia recordings are not as sharp as I prefer. Lowell   … [Read More...]