ITA Wealth Management

Do you have the stomach to stay with equity investments or are you fleeing to CD’s, treasury bills, or cash?  For those who do not need the money over the next three to five years, I recommend sticking with your asset allocation plan. Take dividends and other available cash and begin to shore up asset classes that are under target.  I would not be in a hurry to do this as the broad market is likely to be in a “funk” for another year.  Examine the StockCharts for asset classes of interest and carefully pick your buy-in points.

The current “rescue” plan does not adequately do the job.  One economist I respect said the bill that was voted down in the House was superior to the bill passed in the Senate.  One can only hope that additional spending measures will be placed on the back burner until the financial conditions of the country are turned in another direction.

The various portfolios are being upgraded over on Premium Content.  The youngest portfolio, Scrappy, was the latest to be updated and it is outperforming the VTSMX benchmark by over 40%.  We do not pay much attention to these numbers other than to look for trends.  Keep in mind that the younger the portfolio the more the Internal Rate of Return numbers will change from day to day.

The AA-Mosaic and Mosaic2 are also current so take a look at those spreadsheets.  Thus far, only the Mosaic2 portfolio is lagging the VTSMX benchmark.

Lowell Herr

Photograph: Shanghai, China

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