100 Level

Investment Resolutions

With the start of a new year, it is a good idea to establish some goals or resolutions.  We want to be able to keep these resolutions and many on the list below are not new to readers of ITA Wealth Management.  So let us begin. 1.  Lay out an investment plan. 2.  Pay off credit card debt. 3.  Establish a savings plan.  Follow the Golden Rule of Investing. 4.  … [Read More...]

Rule #4 of Investing

When we get up this high in the numbering system, to use the word Rule sounds a tad stiff or rigid. It might go down a bit easier if one were to think of Rule #4 as a suggestion or guideline. Regardless, this next idea builds off Rule #3 of building a portfolio. In the first two rules we determined the importance of saving and staying disciplined with our program. Now we need to know what to do … [Read More...]

300 Level

Reviewing The Portfolio

Kepler Portfolio Review Monday's calendar tells me it is time for another review of the Kepler Portfolio.  Below is the Dashboard for this portfolio and readers will note nearly all the asset classes are within the target limits.  Those limits are +/- 20% as set by the Threshold inside the TLH Spreadsheet.  Only emerging markets is slightly below target.  If new cash comes … [Read More...]

Portfolio Performance and Benchmarks

A few days ago there was a brief discussion concerning portfolio performance as it related to the ITA portfolios.  The question raised was, why are so many ITA portfolios lagging the VTSMX index fund?  The fundamental answer is that the VTSMX is not an appropriate benchmark unless the portfolio is only made up of U.S. stocks.  Note that VTSMX is comprised of stocks in the U.S. Equity market where … [Read More...]

200 Level

Value Oriented Portfolio

Last evening a value oriented portfolio was mailed to me so I thought I would run it through a Quantext Portfolio Planner analysis.  Unfortunately, three of the thirteen ETFs have "short records."  This simply means the data does not extend back a minimum of three years. The ETFs with limited data are: MGV, VXUS, and VSS.  Nevertheless, here are the results. To view this … [Read More...]

Putting It All Together: Portfolio Construction

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 … [Read More...]

400 Level

Bullish Percent Indicators Show Market Change

Nearly every major index and market sector showed improvement this week.  This came as a surprise, particularly as we enter the summer months.  However, the economy continues to strengthen, albeit rather slowly and not at all for too many citizens. The following information is not available for publication elsewhere on the Internet. … [Read More...]

Risk Reduction With Maxwell Portfolio

Bringing Maxwell on to New Schedule Using the new examination schedule, the Maxwell Portfolio will undergo a look at market close to see if any changes need to be made in the ETFs that make up this portfolio.  Since I went through this process at the end of December I don't anticipate any changes.  The purpose of this post is to bring the Maxwell into the new examination … [Read More...]