Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
best portfolio mix for these times
Old 11-14-2007, 06:53 AM   #1
Recycles dryer sheets
 
Join Date: May 2007
Posts: 371
best portfolio mix for these times

The market has been gyrating like crazy lately. There is much talk of a correction. So what would be the best portfolio mix to be in at these times? I am a very aggressive investor with 95% of my money in equities- 20% of that being in technology, with apple as my single biggest stock holding.

I follow Jack Bower's Fidelity monitor for the bulk of my portfolio, splitting it up between his select system and growth models.

But I'm getting antsy.. what about you guys?
__________________

__________________
novaman is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-14-2007, 07:23 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,616
I'll start by disagreeing with your conjecture that the market has been gyrating like crazy lately. Do you remember the plus and minus 20% swings in the 1990's?

The standard advice of book authors and other experts (Rick Ferri, Larry Swedroe, William Bernstein, Paul Merriman, et al.) is to have the same equity allocation and just adjust your risk by changing the percentage of fixed income. There is not much difference in the long term average annual return between a portfolio of 80% stocks/20% fixed income and a portfolio of 100% stocks, but the risk level is quite a bit different.

I am not antsy, but we have between 25% and 30% of assets in fixed income. Our TIPS fund is up 8% this year. Guess what the YTD return of the S&P500 is so far this year? We also have a big slug of foreign investments including emerging markets, so we feel we are well diversified, yet within a risk level that makes it very easy to sleep very well at night.

If you want more specific asset allocation advice, I can point you to some web sites. Just ask.
__________________

__________________
LOL! is offline   Reply With Quote
Old 11-14-2007, 07:39 AM   #3
Confused about dryer sheets
 
Join Date: Nov 2007
Posts: 9
Quote:
Originally Posted by LOL! View Post

If you want more specific asset allocation advice, I can point you to some web sites. Just ask.
I'll bite. The idea of keeping AA stable is appealing.
__________________
REdreamn is offline   Reply With Quote
Old 11-14-2007, 07:41 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,616
You have to decide if you want market weights or you wish to slice and dice. For starters, take a look at the "must-read" articles in the right-hand panel at FundAdvice.com - Home. You might also wish to read a book like William Bernstein's The Four Pillars of Investing or Rick Ferri's All About Asset Allocation.
__________________
LOL! is offline   Reply With Quote
Old 11-14-2007, 08:04 AM   #5
Recycles dryer sheets
 
Join Date: Dec 2006
Posts: 191
Quote:
Originally Posted by novaman View Post
The market has been gyrating like crazy lately. There is much talk of a correction. So what would be the best portfolio mix to be in at these times? I am a very aggressive investor with 95% of my money in equities- 20% of that being in technology, with apple as my single biggest stock holding.
Less than 10 months ago, we were almost 100% equities. At that time, it dawned on me, that I would have really hard time if half of our savings get wiped out. Since then we have been upping our stake of fixed income (currently at about 12%) with a goal of reaching about 20% by the mid/end of 08. I bit of a drag associated with 20% in bonds/cash seems quite a reasonable trade-off to curb the swings.

If the market takes a (huge) dive between now & end of next year, I will abandon the above plan and keep our equity to fixed income ratio constant. Although I see a need to tinker with the equity to fixed income ratio from time to time (as your risk tolerance changes), I really see no reason to change AA within the equity or fixed income portion of your portfolio (assuming you are not doing any performance chasing/market timing in the first place).
__________________
lucija is offline   Reply With Quote
Old 11-14-2007, 09:01 AM   #6
Thinks s/he gets paid by the post
maddythebeagle's Avatar
 
Join Date: Jun 2005
Posts: 2,450
Quote:
I follow Jack Bower's Fidelity monitor for the bulk of my portfolio, splitting it up between his select system and growth models.
I prefer Jack Bauer myself....the threat level is at orange which means 70/30 stocks/bonds...
__________________

__________________
maddythebeagle is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Appropriate mix of investments? David1961 Young Dreamers 4 11-01-2007 01:32 PM
401k mix Ronstar FIRE and Money 9 09-20-2007 09:09 AM
Seeking advise with Mix Portfolio xmanz3 Young Dreamers 12 06-29-2007 01:43 PM
MOST DIVERSE ETF MIX mathjak107 FIRE and Money 2 05-16-2006 10:35 PM
Achieving a good mix Rich_by_the_Bay FIRE and Money 26 03-14-2006 01:17 PM

 

 
All times are GMT -6. The time now is 09:14 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.