100 Level

Begin Your Investing Career On The Right Foot

Investing Made Simple* Here are a few simple suggestion to get investors off on the right foot.  These suggestions apply to experienced as well as beginning investors. Educate yourself as you begin to save.  You could do a lot worse than visit this blog on a regular basis. Save more than you think you will need and begin the saving plan as early in life as … [Read More...]

Active, Passive and Mosaic Investing

Mosaic As An Investing Style The subject of active vs. passive investing came up a few times on a forum where I'm active.  Readers know my inclination toward passive investing rather than an active investing style.  This link was cause for one of the discussion points as the "Intelligent Speculator" author speaks of "looking for high quality dividend stocks that help … [Read More...]

300 Level

Sixteen Dividend Stocks

Platinum members interested in selecting individual stocks will be interested in this list of dividend oriented companies. In the first screen shot we have the screens applied to over 9800 stocks.  From this group we extract only sixteen.  Those companies are shown in the second screen.   Several of the sixteen stocks that make this "dividend" cut are part of the … [Read More...]

Gauss Portfolio Review: 12 November 2012

Readers interested in a detailed analysis of the Gauss Portfolio will find it at this link.  The following is an update and a discussion of how I am using the ITA Risk Reduction model with Gauss.  The first thing I did this morning was to check the price of each ETF.  So as to maintain the percentage performance of the ITA Index benchmark, I hold a few shares of each asset class.  When I ran the … [Read More...]

200 Level

Will I Run Out of Money Using the Ivy 5?

Ivy 5 Portfolio and Retirement Following up on the quantitative approach to managing portfolio uncertainty, I'll update the Ivy 5 portfolio as referenced in Mebane T. Faber and Eric W. Richardson's book, "The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets." [Open up blog entry for book link to work properly.]  On page 75 of their book, Faber and … [Read More...]

Index vs. Passive Investing

Harold R. Evensky, in his Wealth Management: The Financial Advisor's Guide to Investing and Managing Client Assets book, makes a distinction between index and passive investing.  The distinctions can be found at this location.  Few readers are unaware of the differences between active and passive management, but the subtle definitions between index and passive management deserves some … [Read More...]

400 Level

Sharpe Ratio: Why I Prefer the Sortino and Retirement Ratios

The Sharpe Ratio is a measure of return-risk for a portfolio or individual investment.  Like many concepts that lend themselves to mathematics, it is easier to understand what the Sharpe Ratio means if written in the form of an equation. S = (R - T)/Sigma    (My editor does not have the correct symbol for Sigma.) Developed by Stanford Professor, William F. Sharpe, the return … [Read More...]

Is Risk Receiving Too Much Attention?

Are we paying too much attention to risk or portfolio uncertainty?  The answer to that question may not be as straight forward as readers might expect.  Each time ITA Wealth Management readers see a Quantext Portfolio Planner (QPP) analysis, projected portfolio uncertainty is one of the five critical metrics or outcomes.  Since projected return and projected standard deviation (SD) … [Read More...]