100 Level

Equity Markets: Overbought or Oversold?

Market Condition It is not unusual to be asked, is this a good time to purchase stocks, index funds, or ETFs? Is the market over valued or under valued? While there are always individual stocks in either camp, the question today is a broad market query. One indicator I use to answer the question is the Relative Strength Indicator (RSI) graph for the Vanguard Total Market Index ETF, VTI. Below is … [Read More...]

Ten ETF Commandments

An Internet friend pointed out this site that features many key ETF guidelines. The catchy title of "Ten Commandments of ETF Investing" does not hurt either. While I consider all these commandments valuable, I recommend concentrating on #s 10, 9, and 3. When you have more time, come back and review the other seven. … [Read More...]

300 Level

“Creme List” for 8 July 2011

Twenty-five companies made the elite list this week, the largest number in recent memory.  No new companies cracked the "Creme List" and only one was cut from the list. For new readers, note that the "Creme List" comes from a very old tradition that goes back beyond the creation of ITA Wealth Management.  While I've moved through my stock picking days, I now … [Read More...]

Twenty ETF Portfolio

Ivy 20 Portfolio Now we move to the most complex of Faber's Ivy Portfolios. This 20 ETF portfolio consists of 13 to 17 asset classes depending on how one breaks down the different ETFs. To keep all of these Ivy Portfolios simple, we invest the same percentage in each ETF. A few of the ETFs in this portfolio have not been operational for a full three years. This required the time frame to be … [Read More...]

200 Level

Einstein Portfolio Update: 2 January 2012

The following Dashboard shows the asset allocation plan for the Einstein Portfolio.  This worksheet and the following performance slide include all dividends from 2011.  With the available cash, I expect to put all the under-target asset classes in balance within a few weeks.  I have several limit orders in place for the under-target asset classes. … [Read More...]

Launching That $100,000 Portfolio

What does a $100,000 portfolio look like or how might one go about building a portfolio with this amount of money?  Before launching into the investment particulars, be sure to lay out a portfolio plan.  Think through what risks makes sense for your situation.  Will you be populating the portfolio using individual stocks or will you be using non-managed index funds or index … [Read More...]

400 Level

Modified Sortino Ratio and Retirement Ratio: A Review of Uncertainty Measurements

  While the Sortino ratio was an improvement versus the old methods for measuring portfolio performance against a standard, Retirement Ratio sets even a high performance bar.  The old Sortino Ratio looked like the following. S = (P - B)/DR where S = Sortino Ratio P = IRR for Portfolio B = IRR for Benchmark (we now use the customized ITA Index in our calculations) DR = Downside risk … [Read More...]

Examining “Delta Factor” for ETF Equities

Which ETFs show the highest probability of doing well over the next six to twelve months when compared to the VTSMX index fund?  The "Delta Factor" graph shown below provides a few clues. … [Read More...]