100 Level

Bullish Percent Indicators: 12 October 2012

Major Indexes:  The single major change this week is the move out of the overbought zone for the NYSE BPI.  That is the column that somehow was changed to 68.  That should read, NYSE.  Of less importance is the transportation average moving from defense to offense.  Nevertheless, that move is positive.   Sectors:  There were no significant changes in the 10 … [Read More...]

Balanced Portfolio: Number 3

Portfolio number 3 in this series is what I call a Balanced Portfolio.  Bonds are lowered to 40% of the portfolio so this is still quite a conservative mix of assets.  This portfolio comes close to fitting the 60/40 equity to bond ratio, sort of a standard when it comes to building a middle of the road portfolio.  Note the changes that are taking place in the five key metrics.  … [Read More...]

300 Level

How Are Your Stocks Doing?

Using Morningstar and Yahoo-Finance to compare stocks and ETF performance. Here is an exercise that will prove informative to investors who construct portfolios using stocks. Follow these instructions. Make up a list of the stocks in your portfolio. Go to Morningstar and determine which asset class or style box each stock occupies. Type PAYX in the Quotes option and then scroll down the … [Read More...]

Positioning the Maxwell, Euclid, and Madison

In preparation to launch the ITA Risk Reduction model for the Maxwell, Euclid, Madison, and possibly one or two more portfolios, the basic asset allocation is laid out below.  SDS is shown only as a possibility in unusual circumstances.  The percentages as shown apply only when the ETF price lies above its 195-Day Exponential Moving Average (EMA).  Such is not the case right now as … [Read More...]

200 Level

Portfolio Performance – 22 October 2010

The following data table exhibits the latest portfolio performance information through October 22. Two critical measurements are found in the last two columns, the Sortino Ratio (SR) and the Retirement Ratio (RR). Of the ten portfolios tracked using the TLH spreadsheet, most showed a slight decline in the SR and RR values since last posted. Other data to pay attention to is the difference between … [Read More...]

Active vs. Passive Investing

ITA Wealth Management readers will recall the five decisions discussed in "The Investment Answer," a short book authored by Daniel Goldie and Gordon Murray, who died of brain cancer last month.  Those five fundamental decisions are:  1) Do-It Yourself Decision, 2) Asset Allocation Decision, 3) Diversification Decision, 4) Active versus Passive Decision, and 5) Rebalancing … [Read More...]

400 Level

SORDEX Ratio: Will I Run Out of Money?

Stress Testing the 12-ETF Portfolio What in the world is the Moshe Milevsky SORDEX Ratio? SORDEX is an acronym for Sequence-of-Returns Downside Exposure. Translated for T. C. PITS or The Common Person In The Street, it is a way to run several Monte Carlo calculations and see if you are likely to run out of money in retirement. If that is confusing, let me try to explain in great detail … [Read More...]

ITA Risk Reduction Update

Where do we stand with ETF prices and their respective 195-Day Exponential Moving Averages?  As I am updating all the portfolios this month, I am paying close attention to the five (Maxwell, Euclid, Madison, Kenilworth, and Gauss) portfolios to see if changes are necessary based on the ITARR model.  I checked all the primary ETFs used to populate the asset classes and all are priced above their … [Read More...]