100 Level

Solving Investment Problem #3: I don’t know the language.

Bringing a beginning investor up to speed with the investing vocabulary is not an easy task.  This problem does not have a quick solution.  However, it is made much easier if one takes the path of passive investing vs. active investing.  There is much less to learn and the fundamentals are quite basic.  Here at ITA Wealth Management, our preference is passive investing through … [Read More...]

ITA Wealth Management: An Investment Blog For Serious Investors

ITA Wealth Management is a blog that espouses the virtues of saving, living a modest life-style, index investing, asset allocation, value loading, and portfolio rebalancing.  Readers coming to this blog understand the importance of saving and living a modest life-style.  If not, search for "The Golden Rule of Investing."  Index investing, particularly when it comes to … [Read More...]

300 Level

Preparing A Portfolio For The Momentum Model

Assume one had an existing portfolio and you were interested in shifting from a Strategic Asset Allocation (SAA) model to a Momentum model.  In other words, you are serious about moving from a Buy-Hold-Rebalance approach to a Ranking-Rebalance model.  It helps to deal with specifics so I am going to use one of the portfolios where we have already been using the ITA Risk Reduction model or a slight … [Read More...]

Einstein Portfolio Review: 19 July 2011

Photograph:  Taken at a distance and cropped. Since the last review of the Einstein Portfolio, shares of HYG were sold so as to bring the bond/income asset class back into balance.  Two asset classes are still out of the 25% Threshold range, but we are making good progress with the Einstein.  One limit order is in place for International REITs.  When the order is filled … [Read More...]

200 Level

Retirement Requirements

Fidelity Investments came out with a study showing that retirees need approximately eight times their last salary level to be properly prepared for retirement.  For example, if one is earning $60,000 at age 65, $480,000 is the retirement base line.  Frankly, I think the number eight is too low.  There are a number of ways to determine what the retirement savings level should be and … [Read More...]

Risk Adjusted vs. Capitalization Asset Allocation Portfolio Construction

Is it better to construct a portfolio based on allocating assets around capitalization divisions or is one better off using a risk adjusted platform?  The following two screen shots show the details of these two approaches to portfolio construction.  In each case I am using ten ETFs that provide worldwide diversity.  Four years of historical data goes into the following Quantext … [Read More...]

400 Level

Pre-Maxwell Review

This weekend the Maxwell Portfolio is up for review, and as Platinum members will recall, this portfolio is one of the five used to test the ITA Risk Reduction model.  Of the critical eight ETFs used in this experiment, only DBC is currently priced below its 195-Day Exponential Moving Average (EMA).  While I expect this to continue through today's market, that could easily change as … [Read More...]

Bullish Percent Indicators: 28 September 2012

The broad market decline showed up in a number of the indexes and sectors as Platinum readers will see in the following data tables.  To check these results, be sure to set the BPI graphs to calculate percentage changes, not the traditional setting. … [Read More...]