Domestic Real Estate (VNQ): A Closer Look

Domestic real estate is one of our primary asset classes and we use VNQ as the ETF to populate this asset class.  Of the major eight ETFs used in the ITA Risk Reduction model portfolios, VNQ is one that has yet to drop below its 195-Day EMA.  So far, demand exceeds supply.  In the following two graphs, we take a closer look at the technical indicators for VNQ to see if we can divine any possible future directions.

[Read more…]

Maxwell Update: 6 June 2012

As one of the five ITA Risk Reduction model portfolios, the Maxwell was initially selected as the portfolio Internal Rate of Return (IRR) lagged both the VTSMX and ITA Index benchmarks.  The hope is that over a few market cycles, we will be able to push the portfolio IRR above both benchmarks.

[Read more…]

Cut the Fees

Fees matter!  Read this blog post by Geoff Considine and you will see why I am a nut when it comes to reducing fees.  They make a huge difference over a lifetime of investing.  When I began this investment journey many years ago, it was not unusual for mutual funds to charge an 8.5% load fee on all new money going into the fund.  What a scam. Usury is a better term.  Even now, mutual fund fees are such that one is not going to beat the market if you invest in a few actively managed mutual funds.  The odds are similar to winning in Vegas.

Here is the URL to which I refer.

http://portfolioist.com/2012/06/05/are-401k-fees-consuming-30-of-our-lifetime-savings/