100 Level

Optimizing Dividend Stocks

Here is my optimization analysis on a 12-Dividend portfolio made up of individual stocks.  It might be interesting to look at a portfolio made up of 20 to 30 individual stocks. I like the 9.0 projected return and the high Return/Risk ratio.  A yield of 2.7% is also quite respectable. Do these results match others who are using this optimizer in conjunction with the QPP software? … [Read More...]

Investing And The Marshmallow Test

Kids Marshmallow Test What do marshmallows have to do with investing?  Check out this set of video links and one sees the connection, particularly as it relates to The Golden Rule of Investing. The first video simply demonstrates the test - without any conclusions.  Children are placed in a room with one marshmallow in front of them.  If they can refrain from eating the … [Read More...]

300 Level

Preparing A Portfolio For The Momentum Model

Assume one had an existing portfolio and you were interested in shifting from a Strategic Asset Allocation (SAA) model to a Momentum model.  In other words, you are serious about moving from a Buy-Hold-Rebalance approach to a Ranking-Rebalance model.  It helps to deal with specifics so I am going to use one of the portfolios where we have already been using the ITA Risk Reduction model or a slight … [Read More...]

Bohr Portfolio Update: 30 May 2013

A few adjustments in the Bohr Portfolio took place over the last month based on recommendations coming out of the optimization-momentum spreadsheet.  For example, shares of BND and TIP were sold and shares of VCR and VTI were added to the portfolio.  The Bond and Income asset class is below target due to sales of BND and TIP, and Large-Cap Growth moved above target as a result of adding VCR to the … [Read More...]

200 Level

Save Early

Photograph: Florence, Italy There is no better way to prepare for retirement than to save frequently and early.  The operative word is "early."  The Golden Rule of Investing is to "Save as Much as You Can as Early as You Can." William Bernstein, in his book, "Investor's Manifesto" puts it in harsh terms. "Each dollar you do not save at 25 will … [Read More...]

Feynman Portfolio Study – Part 1

This first Part of the Study identifies the 10 Asset Groups and 18 individual EFTs that comprise the Feynman Portfolio and looks at the general market behavior, as defined by the Vanguard Total Stock Market Fund (VTSMX), over the 6 year period from 06/29/2007 to 06/30/2003.  The VTSMX will be used as the reference, or benchmark, for comparison of portfolio performance through each future phase of … [Read More...]

400 Level

“Delta Factor” Bond Projections

Periodically, I'll post the "Delta Factor" projections for a few bonds used in a number of the portfolios tracked here at ITA Wealth Management.  Few changes occur over time and that is why these projections are posted infrequently.  In the following table of ten ETFs, I used a 50-month time frame so as to bridge the last bear market while not exceeding accurate data for … [Read More...]

Point & Figure Graph Indicators

Point & Figure graphs are useful for identifying ETFs that may be a potential buy.  P & F charts are one of the metrics I use as a clue for potential buying (holding or selling) opportunities.  Below I show examples that illustrate the four basic conditions.  I am looking at the slope of the line, positive or negative, and whether or not there has been positive or negative … [Read More...]