100 Level

Actively Managed Mutual Funds: Stay Away Despite This Article

In the July 2011 issue of the AAII Journal is an article titled, "The Truth About Top-Performing Mutual Fund Managers."  The title is an attention grabber as 'top-performing mutual fund managers' is an oxymoron.  Here are the article highlights. It is virtually certain that all top-performing managers will go through periods where they underperform. Most … [Read More...]

Fama-French Three Factor Model

Have you ever asked yourself, why are all the asset allocation plans for the various ITA Wealth Management portfolios tilted toward the value side of the investing spectrum and why are they skewed toward smaller cap size?  If you are a new reader, the reason is based on research by Eugene Fama and Kenneth French.  Their work is known as the Three-Factor Model.  Here are the three … [Read More...]

300 Level

Einstein Portfolio Review: 19 September 2011

Several portfolios are scheduled for review this week and the Einstein is first on the list.  Platinum members who follow ITA regularly know that I review the portfolios approximately every four to five weeks.  The first thing I do is look at the Dashboard, a worksheet housed within the all important TLH Spreadsheet.  The Dashboard lays out the asset classes and the percentage … [Read More...]

Piotroski Screen of Stocks

One of the most successful stock screens from the American Association of Individual Investors (AAII) "Stock Investor Pro" software is the Piotroski Screen.  Piotroski begins with low Price/Book ratio, a fundamental reason why all ITA Wealth Management portfolios are skewed toward the value side of the investing spectrum.  Other factors that work into the Piotroski screen are … [Read More...]

200 Level

Portfolio Performance Data: 18 November 2011

The following data table speaks to what ITA Wealth Management is all about.  The performance of the 21 portfolios comes from live and operating portfolios.  None are virtual or fictitious portfolios.  Platinum members have access to all the transactions for eight (8) of the portfolios tracked using the TLH Spreadsheet. These portfolios belong to a variety of individuals and I have … [Read More...]

Which Family of ETFs Should I Use?

Question sixteen (16) in this blog entry asked the following question.  "If one prefers Vanguard ETFs, but one's investment service company does not offer commission-free Vanguard ETFs, then is the best option to choose equivalent commission free ETFs that are offered (iShares)?"  Yes, is my answer, and others can chime in with your ideas. Vanguard, Barclay Global … [Read More...]

400 Level

Bond “Delta Factor” Summary

As promised, below is a screen shot of a "Delta Factor" data table for AGG, BIV, BSV, HYG, JNK, IEF, TLT, and TIP.  The reference bond ETF I use in this analysis is BND.  I've done almost no testing with bonds so I don't know the quality of the predictive powers when it comes to bonds. … [Read More...]

Bullish Percent Indicators Show A Stronger Market

Regardless how one might perceive the market this past week, the Bullish Percent Indicators are telling us the overall market is stronger. Major indexes:  The S&P 500 turned the ball over to the offensive team.  More large-cap stocks are showing up with positive bullish point and figure graphs.  The only index not on the offensive is the NASDAQ 100.  Keep in mind that I am … [Read More...]