100 Level

Preparing for 2012

Investing 101 Twenty-two days until we merge into January and begin to make errors writing 2011 instead of 2012 when dating a check.  Spend the next three weeks preparing your portfolio for the new year.  Check the broker statement and see which mutual funds, bonds, stocks, or ETFs need to be sold out of the portfolio in order to capture tax losses.  This assumes you have losses, … [Read More...]

Revisiting the ITA Index

Long-time readers of ITA are aware of ITA Index, our customized benchmark.  Why use a benchmark such as the ITA Index?  While we watch the performance of VTSMX, an index fund that covers the entire U.S. Equities market, it is not an appropriate benchmark if one holds assets outside the U.S. Equities market.  Emerging markets is an example.  For this reason, I came up with a way to measure the … [Read More...]

300 Level

Kepler Portfolio Review: 29 August 2011

If there is one portfolio that is hitting the sweet spot when it comes to meeting the asset allocation plan, the Kepler Portfolio is the master.  Check out the Dashboard from the TLH Spreadsheet below.  Since this is not a large portfolio, I decided to hold the Threshold to 25%.  Moving the percentage down to 20% would have pushed emerging markets into an underweight position, but I … [Read More...]

Low Risk Portfolio Using Dividend Oriented Stocks: Part III

Low Risk Portfolio Number Three Portfolio number three in this series of low risk asset allocations is shown below.  The percentage of funds was suggested by a Platinum member.  One of the major changes in this portfolio involves decreasing the allocation to VNQ from 7% down to 2%.  No dollars are assigned to TIP and we add a few more dividend stocks.  Since these are not … [Read More...]

200 Level

Active vs. Passive Investing: Part 1

The article, "Why I Prefer Index Instruments" stirred up a little discussion on Seeking Alpha.  Within all the comments was a link to a most interesting 12 page rebuttal of passive investing.  I suggest readers print out this article and number the bullet points of each section.  My plan is to write twelve (12) blogs using as an outline the twelve points discussed in the … [Read More...]

Low Price/Book/Share And Small-Cap Stocks Provide Value To Index Investors

Test yourself again. Which stocks are more likely to generate a higher return, those with a low price-to-book value or a high P/B ratio?  If you don’t recall the answer, run a search on Fama & French and read those posts again on this blog. Roger Ibbotson also answered this question in his “Decile Portfolios of the New York Stock Exchange, 1967-1984″ paper where he … [Read More...]

400 Level

Bullish Percent Indicators: Further Market Weakness Beginning To Appear

Bullish Percent Indicators (BPI) are Point and Figure graphs we use to view overall market movements from week to week.  Not only do these indicators provide general market movements based on percentage changes, but the actual values tell us if the market is under valued, fairly valued, or over valued.  The bull market is cooling off based on BPI values and this is why investors need to be paying … [Read More...]

Looking Ahead to Kenilworth Risk Reduction Analysis

Tomorrow, Tuesday, is the scheduled date to run the ITA Risk Reduction analysis on the Kenilworth Portfolio.  Both emerging market and commodity asset classes are under target.  Checking this morning, I note that Vanguard's emerging market ETF, VWO, is nearly a dollar above its 195-Day Exponential Moving Average - and likely to remain there after the market close tomorrow.  This … [Read More...]