100 Level

Ten Cardinal Rules of Investing

  Ten Cardinal Rules of Investing   Below are ten cardinal rules of investing.  If followed, investors will avoid 90% of the problems that plague most investors planning for retirement. 1.  Invest frequently and early in life.  This is The Golden Rule of Investing. 2.  Buy index funds or ETFs rather than individual stocks. 3.  Be patient and don't … [Read More...]

Fiscal Cliff: Time to Activate ITARR Model

We hear a lot about the coming "fiscal cliff."  If Congress does not act before taxes increase and spending cuts go into effect at the beginning of 2013, the country could go into another recession.  Rather than panic, now is the time to pay close attention to each major holding in your portfolio(s).  Instead of limiting the ITA Risk Reduction model to five portfolios, I plan to expand the number, … [Read More...]

300 Level

Smartest Medium-High Risk Portfolio

With this analysis of the medium-high risk portfolio, we leap over the medium risk portfolio found at this site. The medium-high risk portfolio limits the bond/income asset class to 20%.  Remember, we began with 80% allocated to the bond asset class, moved to 60%, then 40% and now 20% or something similar to what we hold in many portfolios tracked here at ITA Wealth Management. Note the … [Read More...]

Return/Risk Optimization of Harry Browne’s “Permanent Portfolio”

The "Permanent Portfolio" developed by Harry Brown leaves quite a bit to be desired when one optimizes for the highest Return/Risk ratio.  The four ETFs selected for stocks, bonds, gold, and cash are VTI, BIV, GTU, and SHY respectively.  There are other choices to represent these asset classes, but these four are the ones I selected for this analysis. … [Read More...]

200 Level

Smartest High Risk Portfolio

This is the last article in this series of QPP analysis of Solin's "supersmart" portfolios.  Of all the portfolios, this one is perhaps the weakest.  Read on to understand why. … [Read More...]

Portfolio Performance: 1 April 2011

Below is the Performance - Uncertainty data table for April 1, 2011.  In the process of updating the table, I focus on the changes in Sortino Ratio (SR) and Retirement Ratio (RR) as those values combine both return and uncertainty for each portfolio.  Since the last update, four (4) portfolios showed gains in the Return/Uncertainty ratio while three (3) showed losses and three (3) came … [Read More...]

400 Level

“Delta Factor” for Wide Array of ETFs

One reader requested to see what the "Delta Factor" looks like for a wide array of ETFs.  Platinum readers will see the "Delta Factor" for two different periods, three and four years.  If sufficient data were available for these ETFs, I would have displayed a five-year "Delta Factor."  Looking at the two slides below, the time frame selected makes a … [Read More...]

Bullish Percent Indicators: 19 July 2013

What information can we glean from the Bullish Percent Indicators (BPI) this week?  Pay attention to our primary index, the NYSE.    When we examine the performance of individual sector ETFs with respect to the broad market (VTI) not many are outperforming the broad U.S. Equities ETF. BPI of Indexes:  Our primary BPI index, the NYSE, actually increased in the number of stocks showing a bullish … [Read More...]