100 Level

Preparing for Retirement: Avoid the Dunning-Kruger Effect

A few days ago I came across an article on the psychology of investing over on the Portfolioist blog.  The article is written by Daniel R. Solin, author of "The Smartest Portfolio You'll Ever Own." Readers will recall that I analyzed some of the portfolios from the Solin book here on ITA Wealth Management.  When I read articles of how our brains can get in the way of … [Read More...]

Third Quarter Reminders

Today ends the third quarter for 2010. TLH spreadsheet users should have the VTSMX and VFINX distributions entered. Make sure to include all the monthly dividends when the broker statements are available or go into your account and see what the dividends are for this month. … [Read More...]

300 Level

Madison Portfolio Review: 16 July 2012

Since the last review of the Madison, shares of VO and VB were added to the portfolio as there was no exposure to growth stocks in the mid- and small-cap asset classes.  Adding shares in these two blend asset classes brings us in contact with stocks of a style (growth) not previously held in the portfolio. … [Read More...]

Bohr Portfolio Review

Since the last update some 33 days ago, shares were added to VTI, VTV, VCR and Berkshire Hathaway (BRK-B) was added to the Bohr.  Yesterday I sold off 100 shares of RWX, but still hold too many based on the optimizer guidelines. Efficient Frontier:  Since the last saved efficient frontier the adjustments in the securities lifted the graph a minor amount.  Berkshire Hathaway (BRK-B or BRK.B) was … [Read More...]

200 Level

Beginner’s Portfolio

If just starting out as an investor, the following portfolio is a slight modification from the Faber-Richardson Ten Portfolio as published in their book, The Ivy Portfolio.  I replaced GSG, a commodity ETF with a gold ETF, GTU.  Instead of VB, I inserted IWN which provides a value tilt to the portfolio. This material is not available for publication elsewhere on the Internet. … [Read More...]

Portfolio Performance: 12/3

Below is the first draft of the 12/3/2010 portfolio performance. First draft in that not all the November or December dividends are included for all the portfolios. Most of the portfolios are hanging on to leads over the VTSMX. Perhaps of more importance are the positive values showing up for the Sortino and Retirement Ratios.   [Table=49] * Insufficient data. Platinum memberships are … [Read More...]

400 Level

Why I Did Not Sell RWX Out of The Euclid Portfolio

Followers of the ITA Risk Reduction model may be puzzled as to why I continue to hold a full load of RWX, the international real estate ETF.  After all, is the price not below the 195-Day Exponential Moving Average (EMA)?  Yes, the rule calls for a sell.  However, in this case I applied a PnF judgment call and it looks like the following.  We are looking at a "High Pole … [Read More...]

Bullish Percent Indicators Mixed

With the strong market yesterday (7/27/2012) I expected most of the Bullish Percent Indicators (BPI) would move up in value and definitely show X's in the right-hand column of the Point and Figure Graphs.  Of all the BPI graphs, the NYSE PnF graph is the most important.  Even though the value dropped, it is still as high as it was back in mid-May. Right now I have the Factor Scale … [Read More...]