Why think small when it comes to portfolio construction? There are a few compelling reasons which I will explain below. Here are a few for starters. It is easy to track and there are fewer trades. With fewer trades, there is less slippage due to the bid-ask price spread. It takes less time to set […]
How To Handle Choppy Markets: 12 June 2020
Yesterday was another equity shattering market. How do we handle such markets, particularly in light of the gray and uncertain future ahead? Covid-19 is raising its ugly head throughout the western states and it is not going to abate for at least another year. Which model makes sense and what are the different Dual Momentum […]
Examining Portfolio Management: An Overview
Now that the bull market is over and we are facing the possibility of further market declines, what is the prudent thing to do? Rather than react to this fear driven market, consider how you are going to manage your portfolio over the next 20 to 25 years. For a starting point, assume you have […]
Dividends
Since we are just about through the dividend season this post may be a little late in coming but, with a number of ITA subscribers indicating an interest in getting a better understand of the practical implications, I thought it might be useful to provide a brief description/explanation with a couple of examples from recent […]
Preparing For 2020
A little over a year ago I wrote a blog laying out four indicators that point to an over-valued U.S. Equities market. In that blog I questioned how long the bull market would continue. Despite the high metric percentages of the indicators, the U.S. Equities market in particular continued to move up in 2019. Would […]
Revisiting the Linear Regression Projection-Convolution (LRPC) System – Part 1
It is probably appropriate to revisit the construction and reasoning behind the Linear Regression Projection-Convolution (LRPC) system that was introduced to ITA members in January 2018. The first point to mention is that, as a measure of momentum, the slope of the Linear Regression (LR) line provides a smoother plot of momentum than the more […]
Flash Announcement
ITA Wealth Management Readers: Good news! This morning I purchased a Vanguard ETF at TDAmeritrade commission free. This will likely result in reconstruction of many investment quivers over the next few months.
Portfolio Construction: Building Momentum-Value-Size Portfolios
While the following portfolio construction model uses TD Ameritrade commission free ETFs, it is possible to fill the critical asset classes with securities from Vanguard, Fidelity, Schwab, or other discount brokers. If you examine the descriptions you will see momentum, value, and size are all included in the investment quiver. In addition, bonds, treasuries, gold, […]
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