100 Level

Equal Weighted vs. Cap-Weighted Indexes

Before Robert D. Arnott came out with his book, "The Fundamental Index: A Better Way to Invest," the subject of building indexes around equal weight given to each stock rather than cap-weighted methods was under hot discussion.  Which is the better approach?  Arnott makes a compelling case for equal weighting as does the following paper referenced below.  Equal weighted … [Read More...]

Retirement: Are You Ready Financially?

What is all this investing discussion about other than to prepare for the financial aspects of retirement.  I am already in that stage of life, but this blog is written for those a long way from retirement as well as for retirees.  If I had my druthers, I would prefer to capture very young investors to this blog as time is crucial to successful retirement planning. When I gave … [Read More...]

300 Level

Optimized QPP Analysis of Schrodinger: Part 3

The first thing one sees in the following analysis is that optimizing the Schrodinger basic asset allocation plan does nothing to improve the future projections.  Here are the results. … [Read More...]

Kenilworth Portfolio Review: 23 November 2012

Early this month I purchased a few shares of VOT to bring mid-cap growth back into balance.  Another change in the Kenilworth occurred back on 10/24/12 when I sold shares of DBC as the price of this commodity ETF was below its 195-Day EMA.  That is the reason the commodity asset class is below target.  Remember, the Kenilworth is one of the ITA Risk Reduction model portfolios.  I will need to see … [Read More...]

200 Level

Basic Financial Principles To Consider When Building A Portfolio

Basic financial principles to consider when building a portfolio include the following. Diversity across global markets Orientation toward equity or growth Inflation protection Low correlated assets Diversity across global markets will include both developed international markets and emerging markets.  To provide the necessary growth for retirement, the portfolio will need … [Read More...]

Keeping Portfolios Simple

Three Sample Portfolios Complicated portfolios discourage investors and that is why I am attempting to simplify the portfolios tracked here at ITA Wealth Management.  There are many examples of possible portfolios in the literature, particularly in books by Faber-Richardson, Swensen, and Bernstein.  Let's start with one of the simple portfolios laid out by David Swensen. While Swensen does not … [Read More...]

400 Level

Bullish Percent Indicator: Six Risk Levels

Readers interested in digging deeper into Point and Figure (PnF) technical analysis will be served by purchasing Thomas J. Dorsey's book, Point & Figure Charting.  His latest edition is available in Kindle format, but I prefer this type of book in hardback as I want to easily bounce from section to section.  That becomes more difficult with a Kindle. A.W. Cohen is considered the … [Read More...]

Bullish Percent Indicators

Platinum members should check out the Bullish Percent Index post over on the new website. If you have not registered on the new site, please do as soon as possible.   … [Read More...]