100 Level

Retirement: Five Asset Class Portfolio

  Five Asset Class Retirement Portfolio If you think many of the portfolios discussed on this blog are overly complicated, try this five asset class portfolio on for size and see if it meets your needs. This portfolio is only slightly more complicated than the "Second Grader" portfolio Allan S. Roth writes about in his book, "How a Second Grader Beats Wall Street." I thought I'd written a … [Read More...]

Equal Weighted vs. Cap-Weighted Indexes

Before Robert D. Arnott came out with his book, "The Fundamental Index: A Better Way to Invest," the subject of building indexes around equal weight given to each stock rather than cap-weighted methods was under hot discussion.  Which is the better approach?  Arnott makes a compelling case for equal weighting as does the following paper referenced below.  Equal weighted … [Read More...]

300 Level

TEVA: A Stock Worth Further Examination

This past weekend I was running my dividend stock screening program to see which companies passed the screen.  Then I recalled that I once had a "valuation" screen that looked for companies that were priced under numerous valuation parameters as laid out in the Stock Investor Professional, AAII's stock screening program.  Here are the valuation parameters I used for my screen, in addition to the … [Read More...]

Mosaic Portfolio Lookback – September 30, 2008

Bear Market Analysis of 2008 Investors with a memory of 2008 know that desperation was in everyone's mind.  How far could the market decline and when would it stop?  Continuing with our look-back theme, what information can we glean from the QPP analysis and what were the Delta Index signals? There is nothing I can see in the following data that throws up any warning flags and we … [Read More...]

200 Level

Preparing for Retirement: Avoid the Dunning-Kruger Effect

A few days ago I came across an article on the psychology of investing over on the Portfolioist blog.  The article is written by Daniel R. Solin, author of "The Smartest Portfolio You'll Ever Own." Readers will recall that I analyzed some of the portfolios from the Solin book here on ITA Wealth Management.  When I read articles of how our brains can get in the way of … [Read More...]

Portfolio Performance: 7 October 2011

While the past week was positive for all the portfolios on an absolute scale, large-cap stocks continued to perform better than globally diversified portfolios.  Therefore, portfolios tracked by the TLH Spreadsheet either remained even or lost a little ground to the VTSMX benchmark.  Tough times in Europe are not helping ETFs such as VEU or emerging markets, VWO. The following data … [Read More...]

400 Level

Risk Management: Benefits of the ITA Risk Reduction Model

Platinum members who employ the ITA Risk Reduction model will find the following guidelines of interest.  When your portfolio comes up for review, and I recommend using a 32-Day review period, run through a number of steps.  Before I get to the steps, here are the reasons for selecting the 32-Day interval. It slowly rotates the review through the month rather than always having it occur at the … [Read More...]

The Delta Factor and International Markets

Recently I was looking at Price-195-Day EMA graphs for a number of international countries and I came upon one for Italy, a country in distress.  While I normally view this graph over a one-year period to gain additional clarity, I changed the scale to three years as that is the time frame I used for the QPP and Delta Factor analysis.  I noticed that EWI hit a peak around May of 2012.  As a … [Read More...]