100 Level

Buy and Sell Guidelines: A General Overview

Armed with analysis tools such as the Quantext Portfolio Planner (QPP), TLH Spreadsheet, Hoadley Optimizer and expanded worksheets, it is possible to outline some basic guidelines for buying, holding and selling ETFs.  As always, individual judgments are required and I'll attempt to explain those when transactions occur.  As always, we make investment decisions in the context of broad market … [Read More...]

Why Do Amateurs Continue To Try When Professionals Fail?

Seeking Alpha is the scene of a debate around the viability of the Efficient Market Hypothesis (EMH).  Before going very far into this topic, please keep in mind that we don't want this information to be scattered very far in the world of investing as we want active manager to keep throwing those $20 dollar bills on the ground so we as passive managers can come along a scoop them up for … [Read More...]

300 Level

Setting Constraints For Asset Classes and Individual Securities

In a recent blog I mentioned the importance of setting constraints on particular parts of the portfolio.  In this blog I'll go into more depth as to what I do when it comes to setting asset class and individual security constraints.  The reason for setting any constraints is to keep the optimizer in check so it does not run wild and create a nonsense portfolio.  The general idea is to provide some … [Read More...]

The Basic Portfolio & The Delta Factor

When setting up a Basic Portfolio, investors want to include at least the "Big Six" asset classes from the U.S. equities market.  Then add some bonds, developed international markets, emerging markets, and REITs.  For larger portfolios, commodities, international REITs, and international bonds are common additions. Remember, this is a basic or core portfolio. This blog entry … [Read More...]

200 Level

Kenilworth Portfolio Review: 19 December 2011

Since the Kenilworth Portfolio is lagging its VTSMX benchmark, I am paying closer attention to the asset allocation.  In addition, the Kenilworth is a candidate for the ITA Risk Reduction model.  Checking moments ago, all critical ETFs with exception of domestic REITs (VNQ) are priced below their respective 195-Day EMFs.  No limit orders are in place for the Kenilworth and we are in … [Read More...]

Optimizing a Basic Portfolio: 3 and 5 Year Analysis

The sample portfolio shown below consists of 16 ETFs that cover all major markets found in the eleven portfolios tracked here at ITA Wealth Management.  VTI covers all of the "Big Nine" asset classes.  We add VIG for added dividends and IWN for any possible push toward small-cap value, or where Fama and French find added alpha. VEU is our developed international market and VWO is the ETF used … [Read More...]

400 Level

Equity ETFs And The “Delta Factor”

Are there any areas of the equity market that look positive for the next six to twelve months?  Even with a relatively strong market this summer, there are pockets of opportunity and they are indicated in the following table. … [Read More...]

Dow 30 And The “Delta Factor”

Normally, I reserve the "Delta Factor" analysis for non-managed index ETFs.  Deviating from that pattern, below is a table for the Dow Jones Industrial 30 stocks.  ITA followers, who are also Mosaic investors, will find this list of interest.  Are there any mega-cap stocks that show promise of price growth over the next six to twelve months? When examining a table such as … [Read More...]