100 Level

Reviewing Buy and Sell Decisions: Using VNQ as Example

Platinum members are aware of the five (Maxwell, Euclid, Madison, Kenilworth, and Gauss) ITA Risk Reduction (ITARR) portfolios.  In an effort to reduce risk there are times when the price of the ETF runs well ahead of its 195-Day Exponential Moving Average (EMA) and we want to protect profits.  How can we do this?  Here are some suggestions and an example.  Remember, this pertains to a situation … [Read More...]

What The Experts Say About Index Investing

Photograph:  Georgia O'Keeffe Museum Research Center - New Mexico   Perusing the Bogleheads web site, I found this long list of quotes from well known investment writers and managers.  Here is what they have to say about index investing.  These bits of wisdom further explain why I favor tilting investments toward non-managed index vehicles.  Further, I favor ETFs for … [Read More...]

300 Level

Kenilworth Portfolio Review: 21 February 2012

While it is a few days early to update the Kenilworth Portfolio, based on the current ETF prices and their respective 195-Day EMAs, nothing is likely to happen over the next few weeks let alone the next three days.  Here is the link to the StockCharts graphs we use for the ITA Risk Reduction model.  The following two screen shots show the Dashboard and Portfolio Performance data for the … [Read More...]

ITA Index: How to Initialize

The ITA Index is a customized benchmark found within the TLH Spreadsheet.  It makes little sense to compare portfolio performance of most portfolios with the very popular S&P 500 benchmark (VFINX) as most portfolios include asset classes other than large-cap stocks.  ITA portfolios, for example, include developed international markets (VEU), emerging markets (VWO), bonds (BND, HYG, … [Read More...]

200 Level

Lost My Spouse – Part III

Determine your long-term cash flow. How much monthly income is required?  Will income from pension and social security meet the cash flow requirements or is additional money required from the portfolio?  For most single retired individuals, some income is required from the portfolio.  My recommendation is to pull no more than 4% annually from the portfolio.  The lower the … [Read More...]

Low Risk Retirement Portfolio

Yesterday, I wrote an article for Seeking Alpha and one reader suggested a simple portfolio where equal percentages be allocated to VTI, GLD, SHY, and TLT.  Exactly what does such a portfolio look like when a Quantext Portfolio Planner (QPP) analysis is applied?  What does the correlation matrix look like and would such a portfolio work as one prepares for retirement?  The following … [Read More...]

400 Level

Suppose Today Was October 2nd

Suppose this was October 2nd instead of September 2nd and the alert is on for the Maxwell and Euclid portfolios.  It is time to fire up the StockCharts graphs for VTI, VEU, VWO, VNQ, and RWX.  Assume we are always going to include TLT and TIP in the portfolio.  Using VNQ as showing in the graph below, how do we interpret what move to make, assuming we were out of the market with … [Read More...]

QPP Analysis of iShare ETFs Over Different Periods

Over the last few days I've posted a number of entries related to the "Delta Factor" (DF) analysis.  This flurry of DF articles came about as a result of questions tied to entry into the market.  If one is holding cash, when is a good time to begin investing that cash into equity and bond vehicles, be it individual stocks, index mutual funds, or index ETFs?  Readers … [Read More...]