100 Level

Equity Markets: Overbought or Oversold?

Market Condition It is not unusual to be asked, is this a good time to purchase stocks, index funds, or ETFs? Is the market over valued or under valued? While there are always individual stocks in either camp, the question today is a broad market query. One indicator I use to answer the question is the Relative Strength Indicator (RSI) graph for the Vanguard Total Market Index ETF, VTI. Below is … [Read More...]

Developing a Portfolio Plan

Basic Suggestions in Portfolio Development* In the beginning stages of setting up a portfolio plan, there are a few essential decisions investors make. Here are a few hints to consider. Follow "The Golden Rule of Investing." Save as much as you can as early as you can. Develop a savings plan as there is no avoiding this step. Live below your means.  Learn … [Read More...]

300 Level

Newton Portfolio Update: 13 September 2012

Slowly, the Newton Portfolio asset classes are coming into balance.  The major move now required is to lower the holdings in bond and treasury ETFs and reallocate that cash into the few asset classes that are still under target. … [Read More...]

Setting Buy Limit Order

Within a TDAmeritrade account, how does one set a limit order to buy shares of an ETF?  The following video clip explains the process.  It is quite easy.  Just log on to your account and walk through the following steps.  As mentioned in the video/audio clip, I rarely set orders of any type outside NYSE business hours as the bid-ask spread all too frequently expands in after … [Read More...]

200 Level

Keeping Portfolios Simple

Three Sample Portfolios Complicated portfolios discourage investors and that is why I am attempting to simplify the portfolios tracked here at ITA Wealth Management.  There are many examples of possible portfolios in the literature, particularly in books by Faber-Richardson, Swensen, and Bernstein.  Let's start with one of the simple portfolios laid out by David Swensen. While Swensen does not … [Read More...]

Beat The Market

How many times have you heard the phrase, "Beat The Market?" Over a year ago, Mark Hulbert wrote an article on this subject. Here is an important quote from the Hulbert article. If you don't know who Mark Hulbert is, Google his name and learn about his contributions to the field of investing. "Even that, however, underestimates the difficulties of beating an index fund. … [Read More...]

400 Level

Reviewing Buy and Sell Decisions: Using VNQ as Example

Platinum members are aware of the five (Maxwell, Euclid, Madison, Kenilworth, and Gauss) ITA Risk Reduction (ITARR) portfolios.  In an effort to reduce risk there are times when the price of the ETF runs well ahead of its 195-Day Exponential Moving Average (EMA) and we want to protect profits.  How can we do this?  Here are some suggestions and an example.  Remember, this pertains to a situation … [Read More...]

Bullish Percent Indicators: 14 September 2012

What a great week for investors!  The Bullish Percent Indicators reflect the strong market, as one might expect.  The question now facing us is, how do we protect profits and can we look forward to a 10% correction?  The negative can wait.  Let's enjoy the week and focus on the positive results. … [Read More...]