100 Level

Pros and Cons of Index Investing

While scanning the Internet, I ran into this interesting post on the pros and cons of index investing. The writer covers many points we attempt to combat through our approach to portfolio construction and asset allocation. The author chides index investors for being too complacent.  We are anything but complacent and one way we avoid this problem is to accurately maintain and monitor … [Read More...]

Investor’s Biggest Mistake

Without a doubt, the biggest mistake investor's make is violating "The Golden Rule of Investing."  The error is not tied to selecting poor stocks, making bad market timing decisions, or even mis-allocating assets.  Sure, those mistakes hurt portfolio performance, but it is inadequate saving early in life that is the culprit.  Failure to save early places incredible … [Read More...]

300 Level

Kepler Portfolio Update: 16 January 2012

As indicated in the middle footer of the Home page, the Kepler is one of three portfolios up for review this week.  The following update includes the Dashboard and the performance data as of last Friday.  The Kepler asset allocation is typical of portfolios tracked here at ITA Wealth Management.  All seventeen (17) asset classes are utilized and this includes breaking the U.S. … [Read More...]

Year End Portfolio Hints

This year, the last business day arrives on December 31st and that gives us a chance to balance our portfolios to the nearest penny. At least TDAmeritrade clients have a high probability of receive access to their statements before the market opens the following week. Go through your portfolio Monday and see if you have any tax losses you might want to capture in 2010. If the loss is small, I … [Read More...]

200 Level

Constructing Your First Portfolio

Faced with the task of building a portfolio from scratch, what are the first steps?  Assume one saved a bit of money, read a few of the Top Ten Investment Books, and is convinced of the wisdom of index investing. Read the following questions and answer them as best you can.  Don't be fearful of making a mistake or feel these decisions cannot be reversed.  Not only can you change them, I … [Read More...]

Portfolio Performance: 9 September 2011

The first full week in September was a mixed bag.  For starters, the market was down when measured by the VTSMX.  Several portfolios gained ground with respect to the ITA Index, our customized benchmark.  A few portfolio picked up fractions of a percentage point on the VTSMX.  A few also showed stronger Sortino ratios while others declined in value. Below is the performance … [Read More...]

400 Level

“Delta Factor” Projections For Next Several Months

Every few weeks I post the market outlook for equity holdings (ETFs and/or stocks) we use in many of the portfolios.  The table below shows the probability projections based on what I call the "Delta Factor." … [Read More...]

What Is The Meaning of Those X’s and O’s?

This morning a question was posed as to the meaning of the X's and O's in the PnF graphs.  One good source of information is StockCharts.  Another excellent source is Thomas Dorsey's book, Point & Figure Charting. The older and less expensive version will work fine. At the heart of PnF graphing is the law of supply and demand.  When the demand for a stock exceeds … [Read More...]