100 Level

Super Charge Your Portfolio

In response to reader requests, I am posting a list of dividend oriented stocks.  Perhaps this is the beginning of a discussion of how one might add a few stocks to a core of index ETFs. The following material is not available for publication elsewhere. … [Read More...]

Gauss Portfolio Review: Risk Reduction Model Update

At the end of each month the Gauss Portfolio comes up for its ITARR review.  Over the past few days I had some concerns that one or more of the eight critical ETFs would be sold out of the Gauss.  Fortunately, this did not happen as the closing prices today showed each of the ETFs priced above their 195-Day Exponential Moving Averages.  We may find a different situation when the Maxwell is … [Read More...]

300 Level

What Should I Do If I Am Holding Cash?

What should I do if I am holding cash?  Is it time to move back into the market, and if so, how should I proceed?  Those are difficult questions considering the S&P 500 (VFINX) increased in value by 87.4% since January 20, 2009.  If one were to follow the Louis Rukeyser analysis, moving immediately into the market is the correct decision.  However, Rukeyser was using data … [Read More...]

“Creme List” for August 5, 2011

Only sixteen stocks made the "Creme List" this week and we cut AMGN, SYY, and T from the list as they failed to show up in the elite group for 13 consecutive weeks.  No new stocks were added to the list this week.  Two companies are priced to "Buy" as indicated the the * adjacent to the position number. … [Read More...]

200 Level

Portfolio Performance Data Table: 30 October 2012

Since the last portfolio performance update over a month ago, every portfolio with exception of the Euclid gained ground on the VTSMX benchmark.  All portfolios except for the Euclid and the Einstein gained ground on the ITA Index, the benchmark that is customized to measure relative performance for each portfolio.  These performance gains also improved the Sortino and Retirement Ratios. In … [Read More...]

Portfolio Performance Data: 2/16/11

Portfolio Performance Data Table When looking over the following data table, note when the portfolios were last updated as not all are current as of 2/16/11.  Portfolios tracked by Captool are only updated at the end of the month. As one looks down column 7 or the column of data measuring the difference between the IRR value for the portfolio and the IRR measurement for the ITA Index, one … [Read More...]

400 Level

Portfolio Risk Management Using The ITA Risk Reduction Model

Following up on Bob Warasila's article, published early this morning, a review of the ITA Risk Reduction model is in order.  In addition to reviewing the ITARR, I will add a few additional wrinkles that should improve portfolio returns. The basic ITARR model has two rules. Buy Rule:  Buy the index ETF when the price of the ETF moves from below to above the 195-Day EMA of the ETF. Sell … [Read More...]

Modifying the Faber Global Tactical Asset Allocation Model

As mentioned in the last blog, I highly recommend ITA readers take the time to download and read Mebane Faber's article, A Quantitative Approach to Tactical Asset Allocation. This blog entry explains a number of modifications or variations to the "Faber Model."  Faber uses five asset classes in his Global Tactical Asset Allocation model and they are as follows. U.S Equities or Stocks  -  … [Read More...]