100 Level

QPP Challenge

For readers using the QPP software, here is a challenge.  Come up with a portfolio that meets the following standards. Include between 8 and 20 ETFs. The projected return will exceed the projections of the S&P 500 by one percentage point.  As an example, I set my S&P assumption to be 7.0% so the projected return will come in above 8.0% The projected risk or uncertainty is … [Read More...]

Grandchildren: Educate Yourself By Reading

Read Only the Best Investment Books This is hint number seven in this Grandchildren Series. I could have easily placed this hint in position number one as advanced education by reading high quality investment books will save any investor from making many mistakes. Search on this blog for the following authors: Bernstein, Ferri, Gibson, Swedroe, Swensen, Hebner, Ellis, and Malkiel.  Arnott … [Read More...]

300 Level

Screening For Top Stocks

Piotroski Stocks One of the default screens found within AAII's "Stock Investor Pro" software is the Piotroski: High F-Score.  Joseph Piotroski is an accounting professor from the University of Chicago.  As readers will see in a moment, it is a simple screen with few requirements.  However, the financial screen cuts the number of stocks down to a minimum.  … [Read More...]

“Creme List” – 24 June 2011

Twenty stocks made the "Creme List" this week.  There were no new-comers and no stocks were purged from the list.  That will happen in a few weeks if some companies do not make a comeback.  Examine the "Creme List" for stocks of interest.  Note that only one is priced to purchase despite the market decline this week. … [Read More...]

200 Level

Active vs. Passive Investing: Part 5

The author of the Active vs. Passive Investing Returns: Does Passive Outperform? paper begins Section Five with this statement.  "Other research supporting the conclusion that passive investing outperforms, comes from analysis of pension plan returns.  Although slightly different, pension plans have most of the same problems as mutual funds.  They are only a subset of the … [Read More...]

Portfolio Construction the ITA Way

David Swensen writes in his "Unconventional Success" book, "Construction of a financial-asset portfolio involves full measures of science and art.  The science encompasses the application of basic investment principles to the problem of combining core asset classes in an efficient, cost-effective manner.  The art concerns the use of common-sense judgment in the challenge of incorporating … [Read More...]

400 Level

“Delta Factor” Bond Projections

Periodically, I'll post the "Delta Factor" projections for a few bonds used in a number of the portfolios tracked here at ITA Wealth Management.  Few changes occur over time and that is why these projections are posted infrequently.  In the following table of ten ETFs, I used a 50-month time frame so as to bridge the last bear market while not exceeding accurate data for … [Read More...]

Portfolio Performance: ITA Ratio

When there is a lot of blog activity it is easy for the Portfolio Performance data table to be pushed off the screen and missed by readers unless they remain current with the new entries.  I'm bringing back the August 13th table with additional data.  Added to this table is the recently developed ITA ratio, another risk measurement that sets a high bar for portfolio … [Read More...]