100 Level

Portfolio Development: Thinking Through First Steps

Several readers have been asking for advice as to which portfolio to follow and is there any philosophy behind the different portfolios?  The portfolios are owned by many different individuals so the portfolios are designed with those investors in mind.  I have had a major role in the Strategic Asset Allocation (SAA) plans of each.  Individual investors differ in their income and … [Read More...]

The Do-It-Yourself Decision

Do you manage your own money or do you seek help from a professional advisor?  Authors Goldie and Murray tilt toward professional management.  They recommend investors who are ill equipped or not interested in managing their own portfolio to use a fee-only advisor rather than a broker. "A broker is working for his firm. An independent fee-only advisor is working for … [Read More...]

300 Level

Is It Worth 50 Basis Points – Or Higher?

Approached recently about the possibility of investing in index funds that are only available through fee based advisors, I decided to take a closer look.  The question of whether to pay 50 to 100 basis points for access to specialized index funds is an honest question.  The first step was to define what risk (portfolio uncertainty) might be required as this would determine the … [Read More...]

Nine Stocks That Pass The Valuation Stock Screen

Within the American Association of Individual Investors (AAII) "Stock Investor Pro" software program are several valuation measurements.  These valuations include the following. Earnings per share Dividend Cashflow Free Cashflow Sales In the screen shown below, I am looking for companies that are currently priced below each of the five valuation screens.  I … [Read More...]

200 Level

Portfolio Development: Thinking Through First Steps

Several readers have been asking for advice as to which portfolio to follow and is there any philosophy behind the different portfolios?  The portfolios are owned by many different individuals so the portfolios are designed with those investors in mind.  I have had a major role in the Strategic Asset Allocation (SAA) plans of each.  Individual investors differ in their income and … [Read More...]

Risk-Parity: Is This Portfolio For You?

A Close Look At A Risk-Parity Portfolio* The idea of risk-parity has been around for a number of years, if not by name, certainly by concept.  Risk-Parity is an alternative method of constructing portfolios.  Instead of building a portfolio around allocation of capital the portfolio is emphasis is placed on allocation of risk.  All eleven portfolios tracked here at ITA Wealth … [Read More...]

400 Level

Bullish Percent Indicators Power Their Way To Offensive Positions

If anyone was in doubt as to the strength of the U.S. Equities market, take a close look at the following two screenshots.  Any cracks that were beginning to show a few weeks ago have been patched.  The Bullish Percent Index as illustrated by Point and Figure (PnF) graphs left no doubt this week that the offensive teams are in complete control.  Only the Utilities sector failed to make the jump … [Read More...]

QPP Analysis of “Top 17 Stocks”

Selecting the recommended stocks from the 40 securities listed in a prior blog, here is the Quantext Portfolio Planner (QPP) analysis of those 17 stocks.  Included is the Correlation Matrix graph and for good measure, I threw in the "Delta Factor" projections.  Since there were fewer stocks than in the original analysis I was able to show all the correlations. QPP Analysis:  As in the prior QPP … [Read More...]