100 Level

Ten Biggest Investor Mistakes – #4

Wealth Management: Mistake #4: Investors lack knowledge about the importance of asset allocation.   Investors do not educate themselves as to the importance of asset allocation, and what asset classes tend to perform better than others over the long-run. I need not go into the importance of overcoming this mistake as I have written extensively about this possible mistake. Just click on the … [Read More...]

The Bogleheads’ Guide to Investing

Bogleheads' Guide to Investing was missed by far too many ITA readers when first published back on July 21, 2010 and for that reason I am bringing it forward so newer members will pick it up.  Another investing book that should rank high on your reading list is "The Bogleheads' Guide to Investing," written by Taylor Larimore, Mel Lindauer, and Michael LeBoeuf.  I … [Read More...]

300 Level

Maxwell Portfolio Update

As long-time Platinum members know, the Maxwell is one of the five original portfolios to participate in the ITA Risk Reduction (ITARR) model project.  More recently I expanded the ITARR model into the Momentum-Optimization Model (MOM) and these moves to reduce risk are beginning to show positive results.  Over the last month the Maxwell's Internal Rate of Return (IRR) picked up 150 basis points … [Read More...]

Sample 4 ETF Portfolio

Another Platinum member asked for an evaluation or analysis of this four (4) ETF portfolio. Efficient Frontier:  This EF graph is instructive as one can easily see how the four ETFs are influencing the final outcome.  IEF and TIP dominate the portfolio and move the current (diamond dot) mix of ETFs down in the lower left portfolio of the graph.  Increasing percentages to SPY and EFA would … [Read More...]

200 Level

Positioning the Maxwell, Euclid, and Madison

In preparation to launch the ITA Risk Reduction model for the Maxwell, Euclid, Madison, and possibly one or two more portfolios, the basic asset allocation is laid out below.  SDS is shown only as a possibility in unusual circumstances.  The percentages as shown apply only when the ETF price lies above its 195-Day Exponential Moving Average (EMA).  Such is not the case right now as … [Read More...]

Portfolio Performance – 15 April 2011

Below is the portfolio performance data table for the 20 portfolios track on the ITA Wealth Management blog.  Several portfolios are tracked using the commercial program Captool.  Captool is no longer supported as the company only caters to professional investors.  Ten portfolios are tracked using the TLH spreadsheet and this Excel™ oriented program provides information not … [Read More...]

400 Level

If I Were To Add One Sector…

If I were to add one sector to my portfolio, which one of the eleven Vanguard sector ETFs would I purchase right now?  Check out the "Delta" and "Delta Factor" data in the table below for the quick and easy answer. … [Read More...]

Seeking For Low Correlated ETFs

When the market shies away from equities and gravitates toward less volatile securities such as bonds and treasuries, we need access to those ETFs that have a low correlation with holdings such as VTI, VEU, and VWO.  What ETFs do we flee to when the equities market begins to wane.  If included in the ranking worksheet, we can easily identify those ETFs that have the strongest … [Read More...]