100 Level

Dump Mutual Funds

Dump Actively Managed Mutual Funds On occasion I am asked if it is best to sell actively managed mutual funds and buy index ETFs, or is it better to make the switch gradually.  The answer is an easy one and it is - dump immediately.  In fact, with this high market now is an excellent time to cash out of actively managed mutual funds and move into index funds, particularly in tax … [Read More...]

Broad Market Outlook Based on Bullish Percent Index

Based only on gut feeling, most of us would expect rather good numbers to show up this week when we drill down into the Bullish Percent Index values for the major indexes and individual sectors.  The following two tables will not be a surprise if this is your impression of the trading week just passed.  First, the major markets. Index BPI:  All indexes showed a slight uptick in the actual … [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...]

Possible Portfolio For 2013

As we look forward to 2013, what might a possible portfolio look like considering the uncertain future.  In the following QPP analysis I built this possible portfolio using the Swensen Six Portfolio as a base.  Then I added several risk adverse ETFs as Platinum members can see. The following material is not available for publication elsewhere on the Internet. … [Read More...]

200 Level

The Art and Science of Portfolio Construction

Basic investment principles require long-term portfolios exhibit the following characteristics. 1.  Equity orientation. Equity orientation includes high-expected return ETFs such as VTI, IWN, VTV, VOE, VOT, VBR, VBK, etc. 2.  Diversification over the entire world market. International exposure is possible through ETFs such as VEU, EFA, VWO, EPP, etc. This blog post is not … [Read More...]

Asset Allocation: The Basic 17 Asset Classes

Much is made of the importance of asset allocation here at ITA Wealth Management.  Not all portfolios tracked on this blog use the seventeen asset classes, but we want to list the stable of assets we draw from depending on the size of the portfolio and goals of the investor.  Cash is included as one of the 17 in the data table shown below. Below the title row we have the three cap sizes ranging … [Read More...]

400 Level

Repositioning Madison Portfolio

ITA Wealth Management readers checking the latest Portfolio Performance* data table will observe that the Madison Portfolio is lagging the VTSMX benchmark.  In an effort to push this portfolio performance to a higher level, I am going to employ the ITA Risk Reduction (ITARR) model, or the same one being used for the Maxwell and Euclid portfolios.  This will require selling some current … [Read More...]

When Was The Last Time The Bullish Percent Indicators Turned Bullish?

"Do you have enough data yet to have a sense of how far in advance or behind these changes are for market down turns or up turns. Clearly they are trailing data but maybe they can help us avoid major declines?" Bob Warasila asked the above question this morning so I went back into my Bullish Percent Indicators spreadsheet for the answer.  The last time the BPI was oversold for most of the major … [Read More...]