100 Level

Sortino Ratio: What Is It?

The following discussion of the Sortino Ratio may get a little "heavy" for some readers.  However, this information is very important for the serious investor, so stick with me and follow along.  Users of the TLH spreadsheet are familiar with the Sortino Ratio as one of the worksheets is built specifically to calculate this number.  The equation is quite simple but very … [Read More...]

Market Timing or Portfolio Hedge

One of the strongest proponents for staying in the market and avoiding market timing is Charles D. Ellis.  In his book, "Winning the Loser's Game" he writes, "The long, sad history of market timing is clear: Virtually nobody gets it right even half the time. And the cost of getting it wrong wipes out the occasional gain of getting it right. So the average investor's … [Read More...]

300 Level

Kenilworth Portfolio Review: 20 September 2011

As mentioned in the middle footnote of News and Updates, the Kenilworth is scheduled for an update this week.  Since the last review, shares of VOT, VWO, RWX, and VUG were added to this portfolio in an effort to bring more asset classes into balance.  I also altered the asset allocation slightly by reducing bonds/income and increasing international REITs.  The yield is so high on … [Read More...]

“Creme List” for 12 August 2011

Earlier today I thought I might need to scrap the "Creme List" or at least replace it with a different set of screens and evaluation tools as one of the key databases went through some revisions.  Fortunately, not only did I find the data I needed, but I found new useful information that I coded into my "Watch List" spreadsheet.  Information such as the Financial … [Read More...]

200 Level

Smartest Medium-High Risk Portfolio

With this analysis of the medium-high risk portfolio, we leap over the medium risk portfolio found at this site. The medium-high risk portfolio limits the bond/income asset class to 20%.  Remember, we began with 80% allocated to the bond asset class, moved to 60%, then 40% and now 20% or something similar to what we hold in many portfolios tracked here at ITA Wealth Management. Note the … [Read More...]

Retirement Planning: Begin Today

"Acting in loco parentis, the government could create powerful incentives to adopt passively managed, appropriately allocated investment programs."- David Swensen Any incentives to move citizens toward some sort of saving plan would benefit society.  More capital is available to develop businesses and retirees would be less dependent of Social Security for sustaining … [Read More...]

400 Level

Bullish Percent Indicators: 19 July 2013

What information can we glean from the Bullish Percent Indicators (BPI) this week?  Pay attention to our primary index, the NYSE.    When we examine the performance of individual sector ETFs with respect to the broad market (VTI) not many are outperforming the broad U.S. Equities ETF. BPI of Indexes:  Our primary BPI index, the NYSE, actually increased in the number of stocks showing a bullish … [Read More...]

Multi-Asset Class Investing

Multi-asset class investing or multiple asset classes is a title that comes right out of Richard A. Ferri’s excellent book, “All About Asset Allocation.” While my reference is to Ferri's first edition, I would pay the few extra dollars and purchase the second edition.  Nudged by a fellow asset allocation investor, I went back and reread Chapter 4 of Ferri’s book. … [Read More...]