100 Level

$100,000 Starter Portfolio

For prospective investors just beginning a portfolio, here is a sample based on the Momentum-Optimization Model (MOM).  MOM is discussed elsewhere on this blog.  Just search to full title or MOM to find this material. We first begin with a ranking of all the securities we might consider for our holdings.  This includes approximately 30 ETFs.  Most are commission free to clients of … [Read More...]

Kenilworth Portfolio Review: 24 April 2012

Today is monthly review time for the Kenilworth Portfolio.  Checking the critical ETFs, three of eight ended up in the "sell" zone, but two are so close the end of day price could reverse the trigger.  Since I will not be making any moves before the business day tomorrow, I'll wait to see the opening prices for VEU and VWO. The Dashboard is shown in the following screen … [Read More...]

300 Level

Twenty ETF Portfolio

Ivy 20 Portfolio Now we move to the most complex of Faber's Ivy Portfolios. This 20 ETF portfolio consists of 13 to 17 asset classes depending on how one breaks down the different ETFs. To keep all of these Ivy Portfolios simple, we invest the same percentage in each ETF. A few of the ETFs in this portfolio have not been operational for a full three years. This required the time frame to be … [Read More...]

Benchmarking a Portfolio

What are the requirements of a good benchmark? The topic of portfolio benchmarks came up again on a forum, so I thought it a good idea to lay down some rules for what constitutes a good benchmark. Here are my ideas on this subject.     1. A good benchmark must be one that an investor can actually purchase. Call it an investable benchmark. This is why investors should shun the … [Read More...]

200 Level

Retirement Planning Mistakes: Mistake #1

Mistake number one in my book is failure to save or to not follow The Golden Rule of Investing.  Open up a spreadsheet and run your own calculations for the following classic comparison. As a nineteen year old you have the foresight and financial opportunity to save $2,000 per year for eight years.  After saving $16,000, for some reason you stop. This $16,000 investment manages to earn the … [Read More...]

Portfolio Performance Data: 2 September 2011

Due to migrating the ITA Wealth Management blog from one hosting site to another, I lost the Portfolio Performance data table for last week.  In the process of updating the table this week I observed changes over a two week period instead of the normal one week interval.  All stocks made absolute gains over the last two weeks, but lost ground on a relative scale.  In other words, … [Read More...]

400 Level

Bonds “Delta Factor” Data

In the following screen shot, readers can see the "Delta Factor" projections for the Bond ETFs I've compiled.  If you are new to ITA Wealth Management and are not familiar with the "Delta Factor," check out the blogs listed in the DF category or search the term. … [Read More...]

Portfolio Risk Management Using The ITA Risk Reduction Model

Following up on Bob Warasila's article, published early this morning, a review of the ITA Risk Reduction model is in order.  In addition to reviewing the ITARR, I will add a few additional wrinkles that should improve portfolio returns. The basic ITARR model has two rules. Buy Rule:  Buy the index ETF when the price of the ETF moves from below to above the 195-Day EMA of the ETF. Sell … [Read More...]