100 Level

Diversify – Diversify – Diversify

If you have questions why the portfolios tracked here at ITA Wealth Management include so many asset classes, just read the referenced article, “The Benefits of Low Correlation.” After reading this article, I had second thoughts about allocating only 5% to commodities. However, 5% should be adequate due to our emphasis on value and small-cap stocks as well as participating in … [Read More...]

Introducing New Sector Security

I'm introducing a new sector security to a number of portfolios even though I have yet to purchase any shares.  I want this "arrow in my investing quiver" just in case I decide to add shares to the portfolio.  I came upon this unique ticker while reading a financial journal.  Here is the ticker symbol and what it is designed to do. This material is not available for publication elsewhere on the … [Read More...]

300 Level

Analysis of Suggested Portfolio

At the suggestion of an ITA reader, below is the QPP analysis of a potential portfolio.  This sample portfolio is made up of investment vehicles I find both familiar and unfamiliar.  ALT and RALS do not have three-year records so that will throw off the analysis.  Investments with insufficient records generally result in higher than expected projected returns and lower than actual … [Read More...]

Improving On The Simple Nine Global ETF Portfolio

While there are advantages to keeping a portfolio simple, there are also disadvantages.  For example, one will miss opportunities by not including asset classes that have been shown by Fama and French to add value to the portfolio.  Namely, value asset classes such as small-cap value (VBR).  We don't want to eliminate asset classes just to keep the portfolio simple.  The Ranking data table shows a … [Read More...]

200 Level

Risk Reduction Portfolio: A Potential Asset Allocation Plan

Bob Warasila, author of the "New Normal" portfolio, sent me an asset allocation plan that is worth sharing with Platinum members.  This Risk Reduction Portfolio differs slightly from one I recently posted over on Seeking Alpha in that this portfolio has a small exposure to precious metals and it also includes on stock.  In the following three screen shots readers will find the … [Read More...]

Passive vs. Active Investment Strategy

Using Morningstar and Yahoo-Finance to compare stocks and ETF performance.* Here is an exercise that will prove informative to investors who construct portfolios using stocks. Follow these instructions. … [Read More...]

400 Level

Bullish Percent Indicators: 8 February 2013

Platinum members will note the market strengthened this past week.  How long can this continue?  I have no answer to that question.  Check out both index and sector screenshots.  There is one anomaly Staples) I will attempt to explain. … [Read More...]

Retirement Target Return Revisited

Retirement Target Return Investors always have a goal for their portfolio, whether stated directly or indirectly.  For some it may be as simple as to not lose money.  For others it is to outperform a benchmark.  Exactly what is the Retirement Target Return (RTR) and how does it fit in with portfolio risk management?  RTR is one of the factors found in the Retirement Ratio (RR) … [Read More...]