100 Level

15-Stock Diversification Myth

Diversification Myth Debunked   How many stocks does it take to eliminate portfolio risk?  The number 12 to 15 often crops up.  If that is too few, then maybe 20 to 30 will do.  This number has also come under fire, particularly in a world economy where U.S. companies no longer make up the majority of available companies and our economy is shrinking as a percentage of the … [Read More...]

Occam’s Razor and Investing

Establish Basic Principles of Investing What does Occam’s Razor* principle have to do with investing? Furthermore, what is Occam’s Razor?  The principle states that “Entities should not be multiplied unnecessarily.” The principle is attributed to the 14th century Franciscan friar, William of Ockham.  Isaac Newton stated the Occam’s Razor another way with this rule. “We are to admit no more causes … [Read More...]

300 Level

Low Risk Portfolio: Six Dividend Stocks Make A Difference

The following portfolio was sent in by an ITA member who is interested in an analysis of this combination of ETFs and dividend stocks.  There are variations one might build from the stocks submitted.  The following is one portfolio. … [Read More...]

Curie Portfolio Update: 1 June 2012

Photograph:  Sunrise in Hilo, Hawaii June is upon us and it is time to update the Curie Portfolio.  Although the Curie is not one of the ITA Risk Reduction model portfolios, I am applying ITARR methods to some of the asset classes as Platinum members can see in the following Dashboard.  Large-Cap Blend is one of the asset classes I am closely tracking.  When the market closed … [Read More...]

200 Level

Active vs. Passive Investing

ITA Wealth Management readers will recall the five decisions discussed in "The Investment Answer," a short book authored by Daniel Goldie and Gordon Murray, who died of brain cancer last month.  Those five fundamental decisions are:  1) Do-It Yourself Decision, 2) Asset Allocation Decision, 3) Diversification Decision, 4) Active versus Passive Decision, and 5) Rebalancing … [Read More...]

Portfolio Performance: 28 May 2013

It has been nearly two months since I last posted a portfolio performance update.  I'm not trying to hide any information.  Rather, I've been neglecting this post as I was on vacation and it takes time to update all the portfolios.  Even so, not all dividends are recorded in all the portfolios so this data is a close approximation to current values. All but the Kenilworth and Euclid showed … [Read More...]

400 Level

The Delta Factor and International Markets

Recently I was looking at Price-195-Day EMA graphs for a number of international countries and I came upon one for Italy, a country in distress.  While I normally view this graph over a one-year period to gain additional clarity, I changed the scale to three years as that is the time frame I used for the QPP and Delta Factor analysis.  I noticed that EWI hit a peak around May of 2012.  As a … [Read More...]

Risk Reduction Model In Review

When I first began to think about the ITA Risk Reduction model, the idea was to first identify the major asset classes and attach a particular ETF that would capture that particular asset class.  I wanted the coverage to be global in scope, yet confined to a few ETFs so the labor was manageable.  Here are the asset classes I selected for the risk reduction model. U.S … [Read More...]