100 Level

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...]

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

“New Normal” Portfolio Analyzed

Long-time readers of ITA Wealth Management are familiar with the "New Normal" portfolio, a risk oriented portfolio developed by a Platinum member.  Following is an analysis of an approximation of the NN portfolio.  Approximate in the sense that several tickers were combined into one as the "Ranking Software" will not handle more than twenty investments in one run.  In addition I substituted XOM … [Read More...]

Euclid Update for 6 December 2012

Updating the Euclid resulted in setting a few limit orders to put available cash to work.  Limit orders were set to purchase shares of VOE, VBR, DBC, and VB.  Even though these asset classes are within target, I am trying to bring the current percentage holdings closer to the target percentages.  I also set a TSLO to sell shares of TIP as the Bond & Income asset class is above the 15% target.  … [Read More...]

200 Level

Portfolio Performance Update: 19 May 2012

Several weeks flitted by without a portfolio performance update.  Here is the latest information (see data table below) after what we might categorize as a miserable stock market week.  The ITA Risk Reduction model is working!  It is doing exactly what it was designed to do - reduce portfolio risk while increasing relative return.  However, it is still too early to gloat, but … [Read More...]

Weekly Portfolio Performance Update: 27 April 2012

The good news is that every portfolio increased in value this week.  The bad news is that all but one portfolio (Maxwell) lost ground relative to the benchmarks.  Two factors played into this scenario.  1) International markets continue to lag the U.S. Equities market.  2) Growth equities are performing better than value and that hurts our portfolios since we skew the Strategic … [Read More...]

400 Level

Bullish Percent Indicators: Markets Beginning to Weaken

For the first time in many weeks we are beginning to see some cracks develop in what has been a very strong stock market.  To see what I mean, examine the two screenshots shown below. The following information is not for publication elsewhere on the Internet. … [Read More...]

Bullish Percent Indicators Are Strong But Merit Caution

Major Markets:  The offense has the ball for all major index markets.  The NASDAQ did give up a little ground, while all others moved forward.  While the signals are positive, two of the markets are in the over-bought zone.  Therefore caution is in order. … [Read More...]