100 Level

Advice for a Beginning Investor

This week I met a woman (I'll call her Rose) who was asking for investment advice.  Rose is new to investing and wanted to know how she can begin investing in the stock market.  Here is the advice I passed on and if other readers want to add to this basic advice, post your ideas in the comments section associated with the blog entry. 1.0  Open up an account with TD … [Read More...]

Revisiting the ITA Index

Long-time readers of ITA are aware of ITA Index, our customized benchmark.  Why use a benchmark such as the ITA Index?  While we watch the performance of VTSMX, an index fund that covers the entire U.S. Equities market, it is not an appropriate benchmark if one holds assets outside the U.S. Equities market.  Emerging markets is an example.  For this reason, I came up with a way to measure the … [Read More...]

300 Level

Constructing a Simple Seven ETF Portfolio

Looking for a conservative portfolio with reasonable QPP values?  Check out the following asset allocation plan that includes 40% allocated to bonds and income with an added bent toward value as advocated by Fama & French.  This portfolio covers the global market, both in equities and REITs.  The EFV ETF skews the portfolio toward the value side. … [Read More...]

“Creme List” for 22 January 2011

CSCO is back on the list and we lost LLY.  Otherwise, only minor shifts occurred this week.  No stock was priced to purchase according to my analysis. Platinum membership available for a mere $5.00 per month. … [Read More...]

200 Level

Portfolio Performance: 18 February 2011

  ITA Wealth Management readers will find the February 18 portfolio performance data table below. Since the last update, the Curie, Newton, Schrodinger, Einstein, Bohr, and Maxwell gained ground on either the VTSMX or ITA Index benchmarks.  Several of these portfolios also showed an increase in the Sortino or Retirement Ratios.  When this occurs, it is a significant positive … [Read More...]

Portfolio for 25-Year Old: The Positives and Negatives

As a followup to William Bernstein's e-book, "The Ages of the Investor," what might a portfolio look like for a 25-year old investor?  The following portfolio is built around 15 ETFs that cover the U.S. Equities market, developed international markets, commodities, emerging markets, both domestic and international REITs, sovereign debt, bonds, and treasuries.  In other words, we are diversifying … [Read More...]

400 Level

Bullish Percent Indicators Continue To Show Market Weakness

Last week the Bullish Percent Indicators (BPI) began to show cracks.  This week those cracks opened up further, but not to crevasse proportions.  There was one exception within sectors as you will see below. This material is not available for publication elsewhere on the Internet. … [Read More...]

Adding SDS to Reduce Portfolio Uncertainty

Another risk reducing card to use with the ITARR model is the ultra-short ETF, SDS.  By allocating 10% of the portfolio to SDS, we make a significant difference in breaking the back of portfolio volatility.  While the projected return is lower, take note of the dramatic increase in both the Return/Uncertainty ratio and the Diversification Metric (DM). … [Read More...]