100 Level

Music Recommendation for Week of April 14

My first recommendation for this week was Masters of the Trumpet until I saw that only used copies are available on Amazon, and the cost is excessive.  If you are able to secure this CD from another source, I highly recommend it.  Moving on to another excellent choice is a complete recording of Johannes Brahms symphonies.  There are many choices of these symphonies and my recommendation is only … [Read More...]

A Portfolio Construction Policy

Photograph: Main Gate to University of Glasgow, Scotland As an educational investment blog, ITA Wealth Management is all about portfolio construction, management, and monitoring.  In this post I will focus on the beginning steps of portfolio construction.  Portfolio construction is the process of assembling security holdings using a Strategic Asset Allocation blueprint.  We will … [Read More...]

300 Level

TEVA: A Stock Worth Further Examination

This past weekend I was running my dividend stock screening program to see which companies passed the screen.  Then I recalled that I once had a "valuation" screen that looked for companies that were priced under numerous valuation parameters as laid out in the Stock Investor Professional, AAII's stock screening program.  Here are the valuation parameters I used for my screen, in addition to the … [Read More...]

The Art and Science of Portfolio Construction

Basic investment principles require long-term portfolios exhibit the following characteristics. 1.  Equity orientation. Equity orientation includes high-expected return ETFs such as VTI, IWN, VTV, VOE, VOT, VBR, VBK, etc. 2.  Diversification over the entire world market. International exposure is possible through ETFs such as VEU, EFA, VWO, EPP, etc. This blog post is not … [Read More...]

200 Level

Stress Testing the Kepler Portfolio

Next week the Kepler Portfolio is up for review.  In advance of that update I am running what I call a "stress test" assuming this to be your retirement portfolio.  Given a set of assumptions laid out in the first slide, would this portfolio last through retirement? Here we have a 40 year-old who plans to retire in 2040 at age 68.  Having already saved $200,000 and planning to put away another … [Read More...]

Retirement Analysis: What Must Be Done To Avoid Retirement Poverty

As promised, here is the Quantext Portfolio Planner (QPP) retirement analysis using the Kenilworth Portfolio as an example.  The first screen shot shows the assumptions involved in the analysis.  The second slide is familiar to Platinum readers as it lays out the investments and percentage in each.  The third slide is the scary one as it presents the grim details or the … [Read More...]

400 Level

Delta Factor Projections for International Countries

Based in a request from a Platinum member, here are the Delta Factor (DF) projections for the international countries I track on a regular basis.  As might be expected, since DF relies on reversion-to-the-mean principles, countries that are in trouble show up as the best opportunities over the next several years.  Investors need to perform their own research as the Delta Factor is just one … [Read More...]

Potential Risk Reduction Moves For Einstein Portfolio Analysis

As a precursor to the review for the Einstein Portfolio due tomorrow, what moves, if any, are likely.  Keep in mind that the Einstein is not one of the five portfolios in the ITA Risk Reduction model experiment.  Nevertheless, we don't want to stand by and lose capital. … [Read More...]