100 Level

Goofus vs. Gallant

As a follow up to The Golden Rule of Investing, I am bringing this post forward so new readers of ITA Wealth Management will not miss it. This post drives home the importance of investing frequently and early. As a small boy, my family subscribed to a magazine called “Children’s Activities.” Each issue contained a story of two characters, Goofus and Gallant. We all wanted to be … [Read More...]

Precious Metals and European Crisis

Precious Metals React Badly to European Crisis In times of economic uncertainty, a wise investor would hedge their market bets with silver and gold in hopes of a future payday. They would either buy precious metals in bullion and coins or invest in stocks related to precious metals, like mining stocks. Historically, precious metals are considered "safe havens" when the stock market may … [Read More...]

300 Level

Sample Portfolio For Fidelity Clients

The following portfolio represents a sample of commission free ETFs available through Fidelity.  The efficient frontier shows an asset allocation plan that is so close to an optimized portfolio that the diamond and red dots are no different on the graph. Efficient Frontier:  The indicator for the optimum portfolio lies behind the diamond dot.  The Return/Risk ratio is just a bit over 0.5, quite … [Read More...]

TEVA: A Stock Worth Further Examination

This past weekend I was running my dividend stock screening program to see which companies passed the screen.  Then I recalled that I once had a "valuation" screen that looked for companies that were priced under numerous valuation parameters as laid out in the Stock Investor Professional, AAII's stock screening program.  Here are the valuation parameters I used for my screen, in addition to the … [Read More...]

200 Level

High Yield Retirement Portfolio

A Platinum member submitted the following portfolio for analysis.  The portfolio is designed to throw off income for a retiree and as you can see, the historical yield is a very high 4.6% so the portfolio is meeting that goal.  Take note that the portfolio outperformed the S&P 500 and did it with much lower risk. The projected return over the next six to twelve months is 7.6% or very close … [Read More...]

Kepler Review: 1 August 2011

It is again time to review the Kepler Portfolio.  The Dashboard worksheet shown below is the asset allocation plan for the Kepler and the second screen shot includes the performance numbers as of 9:40 a.m. on August 1, 2011.  When I discuss setting up a Strategic Asset Allocation plan for a portfolio, the slide below is such an example.  Note how the percentages are allocation in … [Read More...]

400 Level

“Delta Factor” Changes Over Last Week

How are the "Delta Factor" projections altered after a positive week in the market?  To answer this question, I listed many of the ETFs used in various portfolios and ran the analysis for two different time frames.  The first screen shot shows the Delta and Delta Factor from 10/3/2007 through 10/3/2011.  The second screen shot captures the data from 10/10/2007 through … [Read More...]

Strictly International: What Is The Delta Factor Projecting?

Several weeks passed since I last updated the "Delta Factor" projections for international ETFs.  In addition to the usual Delta Factor projections, I also ran an optimization of these ETFs to see where the QPP indicates best buys.  First, the Delta Factor projections. … [Read More...]