100 Level

The Case of Equity Correlations

Readers following the various portfolios may have reservations about eliminating particular asset classes, particularly mid- and small-cap blend as represented by VO and VB.  Why sell off these asset classes?  The reason is the high correlation between the asset classes as you can see from the following screenshot.  The first nine ETFs cover the "Big Nine" U.S. Equity asset classes, and they are … [Read More...]

Establishing An Investment Philosophy

Before buying a stock, mutual fund, ETF, or any other investment, it is best to think through what you want your portfolio to accomplish.  For most savers, the portfolio is expect to grow in size and eventually throw off sufficient income to see one through their retirement years and perhaps pass something on to children and a favorite charity.  Exactly what is my investment … [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...]

Procter and Gamble (PG): A Test Analysis

The following analysis of Procter & Gamble (PG) is a test to see if I can upload readable graphics, and to illicit reactions from readers as to whether or not this type of individual stock analysis is useful. I am using PG as the test since it is a well known and established company.  Also, it is one of my holdings in at least one portfolio tracked here at ITA Wealth Management.  To come up … [Read More...]

200 Level

Rule #8: Should I Invest In a Roth IRA or Traditional IRA?

Which type of IRA account should one use for a personal retirement account?  Is it best to use the Roth IRA or traditional IRA.  With the Roth IRA, one pays the taxes before investing and the money is available tax free in retirement.  With the traditional IRA, one deducts taxes going in and pays taxes when the money is withdrawn.  You may find this surprising, but it makes no difference which you … [Read More...]

Portfolio Performance: 16 December 2011

This is the first showing of the new truncated performance data table.  While the portfolios took a hit as the market declined over the last several weeks, this latest update showed relative improvement when portfolios are measured against the ITA Index, a custom benchmark, and the VTSMX benchmark.  Portfolios reveling the greatest gains were: Curie, Kenilworth, Euclid, and … [Read More...]

400 Level

Understanding Feynman Portfolio Study Part 6-4

The following material is presented as an example to make sure I, and other readers, understand the significance and method of implementation for the Feynman Portfolio.  I am going to choose a different set of assets so I am not duplicating the example put forth in Part 6-4. Ranking of ETFs:  Here we have a list of possible securities to invest in a portfolio.  Using SHY as the "cutoff" we have … [Read More...]

Bullish Percent Indicators Update: 12 April 2013

Few changes occurred in the Bullish Percent Indicators over the past week.  Some increases in values were noted, but no shifts between the offensive and defensive teams.  For the benefit of new members, this weekly update is what we use to gauge the overall condition of the U.S. Equities market. The following material is not available for publication elsewhere on the Internet. … [Read More...]