100 Level

Active, Index, Passive or Mosaic Investing

Investing Styles Are you an Active, Index, Passive or Mosaic investor? Answer this question and one focuses at the heart of investing. Rather than answer this question with one blog post, I will strive to define and explain the different styles over a series of entries spanning into next week. While I've written on the subject of investing styles before, I'm sure there are new … [Read More...]

US Dominated Porfolio: Analysis Part I

The following portfolio was submitted by a Platinum member for analysis.  As you will see, this is a U.S. Equities dominated portfolio.  As a result, you will note in the Historical Section how well it performed with respect to the S&P 500 over the past five year.  Only 10% is invested in bonds and this should serve the portfolio well over the next five years.  Here is the QPP analysis and in … [Read More...]

300 Level

Is It Worth 50 Basis Points? Part II

Yesterday, I posted a conservative portfolio built around index funds only available through qualified advisors.  The portfolio projections were based on the last five years of data.  The following screen shot presents future projections of the same portfolio using the last four years of data.  As readers will see, nothing really changes in the way of projections.  What does … [Read More...]

Graham – Dodd List of Stocks

We hear many positive comments about the investment strategies advocated by Benjamin Graham and David Dodd.  What stocks crop up if one were to use a Graham-Dodd screen to isolate stocks from a database of over 9,000 companies?  Below is such a list.  We look for low price-to-net current asset value stocks. As you look over this list of companies, keep in mind what Benjamin Graham … [Read More...]

200 Level

An Optimized 18 ETF Sample Portfolio

In response to concerns over the allocations to specific ETFs shown in the "Maximize Return/Risk" sample portfolio, below is an optimized revision.  Removed are the individual stocks as they always require an additional layer of complex analysis.  In their place I added VFH, the financial sector ETF that is currently showing a buy based on "Delta Factor" analysis.  I also replaced GLD with another … [Read More...]

Why Do Amateurs Continue To Try When Professionals Fail?

Seeking Alpha is the scene of a debate around the viability of the Efficient Market Hypothesis (EMH).  Before going very far into this topic, please keep in mind that we don't want this information to be scattered very far in the world of investing as we want active manager to keep throwing those $20 dollar bills on the ground so we as passive managers can come along a scoop them up for … [Read More...]

400 Level

Reviewing the ITA Risk Reduction Model

Readers not familiar with the ITA Risk Reduction model would do well to review this blog post.  Of the eleven portfolios tracked here at ITA Wealth Management, five are undergoing testing of the ITARR model and they are: Maxwell, Euclid, Madison, Gauss, and Kenilworth.  Of these five, Platinum members have access to the trades for the Gauss and Kenilworth, but not the other … [Read More...]

Bonds and Income ETFs: Does It Make Sense To Include In Portfolio?

For several years word on the street was that interest rates would rise and bonds would fall in price.  That has not happened and all the "bond Eeyore's" have been wrong, including me.  With interest rates as low as they now are when will we see a turn?  According to the FED, interest rates will remain low so long as unemployment remains high.  That is the current correlation. What is the outlook … [Read More...]