100 Level

Are Stocks and Bonds Dead?

The November 26th issue of Time magazine carries an article by Rana Foroohar focusing on Bill Gross and Mohamed El-Erian, PIMCO executives, who are frequently quoted about the market outlook and reasons why they are both so pessimistic.  Gross and El-Erian don't differ all that much from Grantham's On The Road To Zero Growth projections. Quoting from the Time article, "Gross recently stunned … [Read More...]

Registration Issues

A few Platinum subscribers are having problems accessing the reserved content on this blog and it is likely due to not cleaning up all former subscriptions on PayPal. … [Read More...]

300 Level

“Creme List” Stock Additions For Special Index Oriented Portfolios

"Creme List" stocks have a history that goes back ten years or long before this blog was launched on February 14, 2008.  The original screen for "Creme List" stocks was a ranking system comprised of 20 to 25 metrics.  Many of the stocks were familiar names to investors.  I closed down that system when one or more data sources changed their format making it … [Read More...]

Benchmarking a Portfolio

What are the requirements of a good benchmark? The topic of portfolio benchmarks came up again on a forum, so I thought it a good idea to lay down some rules for what constitutes a good benchmark. Here are my ideas on this subject.     1. A good benchmark must be one that an investor can actually purchase. Call it an investable benchmark. This is why investors should shun the … [Read More...]

200 Level

Portfolio Performance: 4 November 2011

Below is the performance table for the 21 portfolios tracked here at ITA Wealth Management.  SR is the Sortino Ratio, IR represents the Information Ratio, and RR is our own Retirement Ratio.  I'm still in catchup mode so a number of portfolios are not current.  I will be working on updating all portfolios next week.  Readers will note the portfolios tracked using Captool … [Read More...]

The Active vs. Passive Management Debate

Will there ever be a definitive answer to the active vs. passive management debate?  Likely not and here are possible reasons why we will never have a complete answer to which method is superior.  At the very core of the argument is lack of data, at least as it pertains to one level of the argument.  The active vs. passive argument is carried on at two levels.  One level is … [Read More...]

400 Level

Update On ITARR Big Seven ETFs

Most of us using the ITA Risk Reduction model are in the "neglect" period so this information is not all that essential.  For those who are still thinking about using ITARR, all but VTI are now priced below their respective 195-Day EMAs.  Yes, IWN, VEU, VWO, VNQ, IGE, and RWX are all priced below their EMAs.  Some are well below while others are only a tad below. Once … [Read More...]

Examination Periods of Risk Reduction Model Portfolios

Risk Reduction Examination Dates A number of readers have written to me asking if one needs to wait until the end of the month before examining where the price of the ETF or stock is compared to its Exponential Moving Average (EMA).  While the Faber-Richardson model, as explained in their "Ivy Portfolio" book, use end of the month in their research, I don't think it is all … [Read More...]