100 Level

Learn By Example

If your learning style is parallel to mine, it is much easier to learn by example vs. straight theory. While it is important to know and understand the logic behind an investment philosophy, it is even better to see the policy in action and observe how well it performs. That is what motivates me to write the ITA Wealth Management investment blog. This is an investment education blog. 1) How do … [Read More...]

Five Essential Financial Directives

Five Essential Financial Guidelines   1) Pay down credit card debt and never, ever borrow from a bank using a credit card. There is no way you will earn as much year after year through investments as you are paying interest on credit card debt. Simply put, pay off the credit card balance in full each month. There is no interest rate to hate as much as credit card interest. 2) Save as … [Read More...]

300 Level

Benchmark Requirements

What are the requirements for a proper benchmark? This issue comes up from time to time and I ran across it again in Richard Ferri's book, "The Power of Passive Investing." Here are the requirements, and I quote from his book. … [Read More...]

List of Dividend Stocks

Investors looking to build a portfolio from stocks that show continual growth in dividends will find the following list of interest.  From this long list I add a few more screens and the three stocks that pass these additional screens are identified below. Readers are reminded that well over 95% of the investments in ITA Wealth Management portfolios are invested in non-managed index ETFs.  … [Read More...]

200 Level

Portfolio Performance: 22 April 2011

ITA Wealth Management Portfolio Data While absolute performance or IRR values increased for the individual portfolios, most gave ground on a relative basis to both the ITA Index and the VTSMX benchmarks.  In several cases, the Sortino Ratio (SR) and Retirement Ratio (RR) increased, a positive sign.  Anecdotal evidence points to the portfolio's performing better relative to their … [Read More...]

Asset Allocation: Breaking It Down

Launching a new portfolio requires a portfolio policy or an asset allocation plan.  There is a significant body of research on the importance of this decision.  However, some of the latest research by Ibbotson and Associates show this decision to be less important than it was thought to be twenty years ago.  Here are some of the steps I go through in thinking through what it means … [Read More...]

400 Level

Bullish Percent Indicators Mixed

With the strong market yesterday (7/27/2012) I expected most of the Bullish Percent Indicators (BPI) would move up in value and definitely show X's in the right-hand column of the Point and Figure Graphs.  Of all the BPI graphs, the NYSE PnF graph is the most important.  Even though the value dropped, it is still as high as it was back in mid-May. Right now I have the Factor Scale … [Read More...]

Reducting Risk With The Euclid Portfolio

The 12th of the month is the day to closely examine each ETF used to populate the Euclid Portfolio, one of ITA Risk Reduction model portfolios.  While the markets have several hours before they close, it is highly unlikely any of the ETFs will change positions with their respective 195-Day Exponential Moving Averages (EMAs).  Here is the process I went through in my examination of the … [Read More...]