100 Level

Grandchildren: Educate Yourself By Reading

Read Only the Best Investment Books This is hint number seven in this Grandchildren Series. I could have easily placed this hint in position number one as advanced education by reading high quality investment books will save any investor from making many mistakes. Search on this blog for the following authors: Bernstein, Ferri, Gibson, Swedroe, Swensen, Hebner, Ellis, and Malkiel.  Arnott … [Read More...]

Index vs. Passive Investing

Harold R. Evensky, in his Wealth Management: The Financial Advisor's Guide to Investing and Managing Client Assets book, makes a distinction between index and passive investing.  The distinctions can be found at this location.  Few readers are unaware of the differences between active and passive management, but the subtle definitions between index and passive management deserves some … [Read More...]

300 Level

Maxwell Portfolio Update

As long-time Platinum members know, the Maxwell is one of the five original portfolios to participate in the ITA Risk Reduction (ITARR) model project.  More recently I expanded the ITARR model into the Momentum-Optimization Model (MOM) and these moves to reduce risk are beginning to show positive results.  Over the last month the Maxwell's Internal Rate of Return (IRR) picked up 150 basis points … [Read More...]

Euclid Portfolio Update: 5 November 2012

Thirty-two days passed since the last review of the Euclid Portfolio and during that time, DBC, one of the commodity holdings dropped in price so that it is now below the 195-Day Exponential Moving Average.  Since Euclid is one of the ITA Risk Reduction (ITARR) model portfolios, it is time to sell DBC and wait for the price to move above its 195-Day EMA.  As Platinum readers can see from the … [Read More...]

200 Level

Portfolio Performance: 26 July 2013

Approximately two months ago I published the last set of performance numbers so it is time to update the table.  Compared to the last set of data, all the portfolios with exception of the Bohr and Kenilworth picked up ground with respect to the customized ITA Index.  The same cannot be said when we compare the Internal Rate of Return of each portfolio with respect to the VTSMX benchmark and there … [Read More...]

Asset Allocation: The Basic 17 Asset Classes

Much is made of the importance of asset allocation here at ITA Wealth Management.  Not all portfolios tracked on this blog use the seventeen asset classes, but we want to list the stable of assets we draw from depending on the size of the portfolio and goals of the investor.  Cash is included as one of the 17 in the data table shown below. Below the title row we have the three cap sizes ranging … [Read More...]

400 Level

Bond “Delta Factor” Projections

As requested, here are the "Delta Factor" projections for bond ETFs.  Keep in mind that VCSH, VCIT, VMBS and VGLT have short records (less than 5-yrs) so can be neglected.  If you have other bond ETFs to consider, send them along and I can add them to this list. … [Read More...]

Buy and Sell Guidelines: A General Overview

Armed with analysis tools such as the Quantext Portfolio Planner (QPP), TLH Spreadsheet, Hoadley Optimizer and expanded worksheets, it is possible to outline some basic guidelines for buying, holding and selling ETFs.  As always, individual judgments are required and I'll attempt to explain those when transactions occur.  As always, we make investment decisions in the context of broad market … [Read More...]