100 Level

Precious Metals and European Crisis

Precious Metals React Badly to European Crisis In times of economic uncertainty, a wise investor would hedge their market bets with silver and gold in hopes of a future payday. They would either buy precious metals in bullion and coins or invest in stocks related to precious metals, like mining stocks. Historically, precious metals are considered "safe havens" when the stock market may … [Read More...]

Madison Portfolio Review

Since the last Madison update 33 days ago, shares of TLT, RWX, and DBC were sold and the available cash was used to pick up shares of VTI - all in keeping with the Momentum-Optimization Model (MOM).  Of the eleven portfolios tracked here at ITA, the Madison is one of three where all the transactions are not available to Platinum members. Madison Dashboard:  The 26% allocated to international … [Read More...]

300 Level

ITA Ratio Video/Audio Clip

Here is another help session for users of the TLH spreadsheet.  This clip provides additional explanation of how to introduce the ITA Ratio, a new performance bar for index portfolios. … [Read More...]

Curie Portfolio Update: 4 January 2012

All the portfolios need to be reviewed after the fourth quarter dividend distributions.  The Curie is no exception.  The cash from the dividends will be used to bring some of the under-target asset classes back into balance.  There are quite a few asset classes that need attention as viewers can see from the following Dashboard.  We use the Dashboard as a way of displaying the … [Read More...]

200 Level

Bond Free Portfolio

Investors wary of the bond market should take a look at this portfolio.  Several goals are on the horizon when building a portfolio.  My preference is to see a projected return exceed that projected for the S&P 500 by 100 basis points.  The second goal is to bring the projected standard deviation in under 15%.  The following portfolio manages to do that without allocating anything to SDS, the … [Read More...]

Passive vs. Active Investment Strategy

Using Morningstar and Yahoo-Finance to compare stocks and ETF performance.* Here is an exercise that will prove informative to investors who construct portfolios using stocks. Follow these instructions. … [Read More...]

400 Level

Examination Periods of Risk Reduction Model Portfolios

Risk Reduction Examination Dates A number of readers have written to me asking if one needs to wait until the end of the month before examining where the price of the ETF or stock is compared to its Exponential Moving Average (EMA).  While the Faber-Richardson model, as explained in their "Ivy Portfolio" book, use end of the month in their research, I don't think it is all … [Read More...]

Return and Risk Relationship

What is the relationship between return of a portfolio and the associated risk involved? Quoting from an “Active vs. Passive” paper I found in my files. “High potential returns always involve high potential risks. There are no low-risk/high-return investments. Investment risk comes in many forms but, to most investors, risk means the potential for losing investment capital and … [Read More...]