100 Level

Solving Investment Problem #3: I don’t know the language.

Bringing a beginning investor up to speed with the investing vocabulary is not an easy task.  This problem does not have a quick solution.  However, it is made much easier if one takes the path of passive investing vs. active investing.  There is much less to learn and the fundamentals are quite basic.  Here at ITA Wealth Management, our preference is passive investing through … [Read More...]

Blog Hint

Readers interested in looking over the portfolios listed under Categories/ITA Portfolios over on the right-hand edge of each page will find this hint useful.  Assume you are interested in examining the Schrodinger Portfolio.  Two methods are available to bring up all information on the Schrodinger.  1) Move to the right-hand edge and click on the Schrodinger link under … [Read More...]

300 Level

Portfolioist Portfolio: Looking For Additional Diversification

Before digging into the following Quantext Portfolio Planner (QPP) analysis too deeply, read Geoff Considine's articles on portfolio diversification.  The first article lays out the basic logic for diversification and the second article goes into more details.  In the following analysis, I take the portfolio and run it through the QPP wringer to see what projections are in store for … [Read More...]

Schrodinger Portfolio Update: 26 April 2012

Looking for a passive portfolio?  Look no further than the Schrodinger.  In operation since late 2000, this portfolio had only two rebalancing purchases over the past year.  Otherwise, no transactions other than cash dividend payouts.  ETFs purchased when the fund was launched are still part of the portfolio.  How is that for stability. In the following screen shot, I am … [Read More...]

200 Level

Retirement Requirements

Fidelity Investments came out with a study showing that retirees need approximately eight times their last salary level to be properly prepared for retirement.  For example, if one is earning $60,000 at age 65, $480,000 is the retirement base line.  Frankly, I think the number eight is too low.  There are a number of ways to determine what the retirement savings level should be and … [Read More...]

Thinking Through a Basic ETF Portfolio

Thinking through the process of constructing the following ETF rich portfolio several required specific goals be met. This material is not for publication elsewhere on the Internet. The portfolio needed to be simple.  While 15 ETFs are not exactly simple, neither is it overly complicated.  To simplify one could reduce the number of bond and treasury ETFs. All ETFs must be commission free … [Read More...]

400 Level

Bullish Percent Indicator Update: 19 October 2012

Despite the poor market yesterday, not too much changed in the Bullish Percent Indicator world.  As Platinum members can see from the tables below, many of the sectors and/or indexes dipped in the number of companies showing positive BPI values (X's in the right-hand column), but few handed the ball over to the defense. … [Read More...]

Delta Factor: Second Draft

Below is the second draft of additional Delta Factor calculations.  As one can see from this table, the trends or signals arrive early.  I'm still not satisfied with the algorithm used to generate the Buy, Hold, and Sell signals for these ETFs. Note the dramatic shift between 9/15/2008 and 10/15/2008.  When I see something like this I recheck my figures. … [Read More...]