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...]

Three-Year Anniversary

Today is the three-year anniversary of ITA Wealth Management.  Thank you for checking in from time to time to view what I am trying to articulate.  In the three years, nearly one million viewers requested this blog.  Of course this is counting crawlers from Google so the number of live readers are much lower.  I think I've seen a viewer from every country except North … [Read More...]

300 Level

Bohr Portfolio Review: 22 February 2012

Shares of VWO [Emerging Markets (EM)] were purchased this week for the Bohr Portfolio bringing the EM asset class into balance.  Even so, we are over 250 shares shy of pulling EM up to the 20% target.  In the following screen shots Platinum members can see the Bohr Dashboard and performance data. The following asset allocation is designed for the long-term investor.  While the Bohr … [Read More...]

Is It Wise To Pay An Advisor For Access To DFA Funds?

Save the Fees Save the fees and manage your own money using low cost ETFs.  You are going to be dollars ahead and here is the evidence.  Let me describe the process I went though to come to this conclusion - and I am not finished with the analysis.  This data is not going to win me friends among DFA advisors. I logged on to one of the premier web sites on the Internet to find … [Read More...]

200 Level

How Many Asset Classes or ETFs Are Required to Construct Diversified Portfolio?

One of my favorite blog writers is Geoff Considine of the Portfolioist.  Yesterday, November 28th, Dr. Considine published an interesting article that begins to answer the above question - How many asset classes or ETFs are necessary to build a well-diversified portfolio?  Considine posits ten (10) asset classes will provide sufficient diversification.  David Swensen argues in his book, … [Read More...]

Portfolio Construction the ITA Way

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 of incorporating … [Read More...]

400 Level

Bullish Percent Indicator Update

In the Bullish Percent Indicator data table below, I want to draw your attention to several features.  1) Look at the latest data in the 06/01/12 row.  The left-hand number, 46.62, is the most important as that indicates the percent of stocks in the NYSE that are generating a bullish PnF graph. [Next time I will include the headers or titles in the screen shot.]  That percent … [Read More...]

Why I Did Not Sell RWX Out of The Euclid Portfolio

Followers of the ITA Risk Reduction model may be puzzled as to why I continue to hold a full load of RWX, the international real estate ETF.  After all, is the price not below the 195-Day Exponential Moving Average (EMA)?  Yes, the rule calls for a sell.  However, in this case I applied a PnF judgment call and it looks like the following.  We are looking at a "High Pole … [Read More...]