100 Level

Reference Portfolio Analyzed

Using an array of ETFs, primarily commission free with TDAmeritrade, I ran a Momentum-Optimization Model (MOM) analysis for the purpose of showing new and experienced investors how the MOM can be used  to manage a portfolio.  Not everyone will be interested in this model as it does require more monitoring than the buy and hold approach. Consider MOM to be one level up in sophistication as … [Read More...]

Ten Biggest Investor Mistakes – #1

ITA Wealth Management Mistake #1: Failure to save adequately for retirement is my number one mistake. Investors do not save enough early enough. One will not have sufficient retirement funds if the saving rate is too low and the key is to begin saving as early in life as possible. All the other mistakes are moot if one does not have capital to invest.  One of the services to Platinum … [Read More...]

300 Level

Madison Portfolio Update: 3 April 2013

Since the last update, shares of the financial sector (VFH) were added to the Madison.  As you will recall, the "Delta Factor" last showed VFH as a Buy and the Ranking Worksheet showed the same.  More on this below.  First we begin this review with the Madison Dashboard.  The Madison is one of three portfolios where all the transactions are not shown.  The other two are the Maxwell and Euclid.  … [Read More...]

Swensen Six: Comparing Optimizers

Using the simple Swensen Six, the following analysis compares the QPP and Hoadley optimizers when no constraints are applied.  The recommendations are quite different.  In both situations I used five years of historical data and assumed the market would grow at 7% annually. First, let's look at the QPP optimization.  With not constraints applied, the QPP recommends 100% of the portfolio be … [Read More...]

200 Level

Gauss Portfolio: Updated Dashboard Reflecting Risk Reduction Model

The Gauss Portfolio is now ready for a 30-Day nap.  With all the critical ETFs above their 195-Day Exponential Moving Averages (EMAs), all required purchases were made this morning.  The following Dashboard shows the asset classes are in balance. … [Read More...]

ITA Asset Allocation Philosophy

Do you ever ask why ITA Wealth Management is such a strong advocate for developing an asset allocation (AA) plan?  While academic studies of the late 1980s placed more importance on asset allocation than more recent studies, there still does not appear to be any portfolio models that outshine broad diversification through asset allocation. Further, complete and in depth studies as to the … [Read More...]

400 Level

“Delta Factor” for Bond ETFs

A week to ten days ago I promised to run a "Delta Factor" analysis on the bond ETFs we use in a variety of portfolios.  One Platinum member requested CSJ be included in the analysis and here it is in the following screen shot. … [Read More...]

Equity ETFs And The “Delta Factor”

Are there any areas of the equity market that look positive for the next six to twelve months?  Even with a relatively strong market this summer, there are pockets of opportunity and they are indicated in the following table. … [Read More...]