100 Level

Investing Made Simple: Eight Basic Rules to Follow

As a review, here are the fundamental principles of investing. Follow The Golden Rule of Investing by saving more than you think you will need. Develop an investment plan and follow it. Build the portfolio around index funds or index ETFs.  I prefer low-cost ETFs.  Eschew individual stock selection as it is a losers game for all but a few. Diversify all over the globe.  Think outside the … [Read More...]

Ten Cardinal Rules of Investing

  Ten Cardinal Rules of Investing   Below are ten cardinal rules of investing.  If followed, investors will avoid 90% of the problems that plague most investors planning for retirement. 1.  Invest frequently and early in life.  This is The Golden Rule of Investing. 2.  Buy index funds or ETFs rather than individual stocks. 3.  Be patient and don't … [Read More...]

300 Level

Basic Portfolio Information

The ITA blog was down most of the day due to a backup file causing the server to close down.  That file was removed and the blog is again functioning.  Platinum members will find my most recent post using the link provided below. … [Read More...]

Rebalancing Threshold Limits

What is the proper percentage to use as the Threshold Limits or Boundary Targets for rebalancing a portfolio?  For example, if we set a target of 15% for an asset class, what upper and lower limits are considered acceptable if the asset class is considered to be in balance.  In the ITA Wealth Management portfolios we have gone as high as 35% and as low as 20% for our target limits.  … [Read More...]

200 Level

Portfolio Review

Einstein Portfolio Review With the computer alarm ringing this morning, I noted it was time to update the Einstein Portfolio.  For new members, I cycle through seven key portfolios used as examples for interested investors.  The Einstein Portfolio is one of the seven.  During each review, I first look over the asset allocation worksheet called the Dashboard.  Below is the … [Read More...]

Portfolio Performance: 14 January 2012

This week saw absolute gains in every portfolio and relative gains against the VTSMX benchmark in five of the eleven portfolio.  Only the Newton and Bohr lost a small fraction of a percentage point with respect to the VTSMX while the Curie, Schrodinger, Kepler, and Euclid remain unchanged.  It was encouraging to see the Einstein, Kenilworth, Maxwell, Madison, and Gauss gain small amounts … [Read More...]

400 Level

Maxwell Portfolio Review: Risk Reduction In Action

With the market closed for Good Friday, we can push the review for the Maxwell up a few hours.  It makes no difference as all the ETFs are still priced above their respective 195-Day Exponential Moving Averages.  VEU escaped a sale by $0.37 so it will come as no surprise if that ETF is not in a sell position when we review the Euclid next round. In the Dashboard below we see that … [Read More...]

Current “Delta Factor” Data

With all the work put into analyzing the "Delta Factor," what are the current market conditions telling us if analyzed over several periods.  In the table below, the highlighted row is the standard three-year period used for analyzing DR.  For this snapshot, I wanted to see if different periods made any difference in the outcome. … [Read More...]