100 Level

Top Ten Investment Books: A Revised List

  Education is a crucial step toward financial success. Where does one begin when trying to come up with the top ten investment books?  Here is my revised list, but be forewarned, this is not a list of books that focus on either fundamental analysis of stocks, nor is it a list of books explaining technical analysis.  In fact, the list below is the antithesis of stock picking.  My … [Read More...]

Go With Index Funds

Flee Actively Managed Mutual Funds Let me quote extensively from Ferri's "Power of Passive Investing" book. "In every asset class, the odds of beating index funds are low, and the payout for being right is well below what a fair payout should be.  The only conclusion one can draw from this data is that active management cannot compete against passive management in any … [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...]

ITA Wealth Management Portfolio Without SDS Allocation

Variations of the ITA Portfolio Yesterday, a question was asked here at ITA - how is the low standard deviation impacted by holding 10% in the ultra-short ETF, SDS?  To answer that question, Platinum readers can take a look at the screen shot below, I set SDS to 0% and moved that 10% up to IWM, the U.S. Equities holding in smaller cap stocks.  If you toggle back to this blog entry you … [Read More...]

200 Level

Requesting Yield To Exceed 3.0%

This morning I had an article published over on Seeking Alpha.  One reader requested what would happen if one of the constraints was to seek a yield of 3.0% or higher.  Below is the Optimization Analysis that meets this request when using the 16 ETF portfolio. The add link function does not seem to be working this morning so below is the URL to the SA … [Read More...]

Portfolio Performance: 26 July 2013

Approximately two months ago I published the last set of performance numbers so it is time to update the table.  Compared to the last set of data, all the portfolios with exception of the Bohr and Kenilworth picked up ground with respect to the customized ITA Index.  The same cannot be said when we compare the Internal Rate of Return of each portfolio with respect to the VTSMX benchmark and there … [Read More...]

400 Level

August “Delta Factor” Risk-Adjusted Portfolio For Interested Investors

What is a "Delta Factor" risk-adjusted portfolio and how is it constructed?  Rather than considering this as a potential portfolio for actual use, view it as an experimental portfolio.  Here are the steps I used to come up with this combination of ETFs. … [Read More...]

Delta Factor: What Is It?

Exactly what is the "Delta Factor?"  While I don't plan to reveal the exact algorithm, here are the basic ideas.   1.  A growth projection is estimated for the S&P 500 for the next year.  In most cases, I assume the S&P 500 will grow at an annualized rate of 7% over the next several months. 2.  The historical period is set for three to five … [Read More...]