100 Level

Ten Biggest Investor Mistakes – # 5

ITA Wealth Management Mistake #5:  Investors pick individual stocks to build portfolios rather than use index funds. … [Read More...]

Kiva Loans Making a Difference

Long time ITA Platinum members know that a significant percentage of the profits from this blog are donated to help the less fortunate.  Search for MEDA or MEDA Trust on this blog for more information.  Since MEDA Trust shut down last March, I switched my giving over to Kiva where 28 loans are active.  I think two of those loans are now paid off so 26 are active, including four more that were … [Read More...]

300 Level

Portfolio Performance: 5 November 2010

Portfolio Performance The market this past week reminded me a bit of market action in the late 1990s in that it was very difficult to outperform the S&P 500. In our case, we use the total market index, VTSMX, as a primary benchmark and it was a challenge for any of the ten portfolios tracked using the TLH spreadsheet to do better than that benchmark. The Retirement Ratio (RR) remained the … [Read More...]

Annaly Capital Management (NLY): Little to Offer Except High Dividend

What does Annaly Capital Management (NLY) have to offer other than a high yield of 12%?  Sales, profits, and earnings are erratic making it difficult to perform any sort of useful analysis.  Check the screenshots below. Not for publication elsewhere on the Internet. Page 1:  Looking at the graphs one would think they are at Six Flags amusement park.  While it is difficult to make any sort of … [Read More...]

200 Level

Rethinking Asset Allocation

Keeping David Swensen's Strategic Asset Allocation model in mind, it is possible to use all seventeen asset classes available in the TLH Spreadsheet to fulfill his recommendations.  Platinum members will see how this is accomplished when the Gauss Portfolio is reviewed tomorrow.  Instead of using six ETFs as I showed in an earlier post, we will use many more, but still stick with … [Read More...]

Eight Asset Porfolio

Photograph: When I first walked Devastation Trail in late 1961 or early 1962, there was no vegetation to be seen as it was soon after the eruption. Consider the following portfolio that holds eight assets including cash.  In this analysis, I am using the 20-year treasury ETF, TLT, to represent cash, a substitution that gives the portfolio a slight boost over current money market rates.  … [Read More...]

400 Level

Suppose Today Was October 2nd

Suppose this was October 2nd instead of September 2nd and the alert is on for the Maxwell and Euclid portfolios.  It is time to fire up the StockCharts graphs for VTI, VEU, VWO, VNQ, and RWX.  Assume we are always going to include TLT and TIP in the portfolio.  Using VNQ as showing in the graph below, how do we interpret what move to make, assuming we were out of the market with … [Read More...]

Bullish Percent Indicator Data

What we have in the following table is something called, major market Bullish Percent Indicators (BPI).  In this table I only included data from 2012.  Values coded with a red background indicate that the majority of companies are overbought and when the background is green, the majority of companies are oversold.  Nowhere in this table of major markets do we see an oversold … [Read More...]