Three portfolios

Three portfolios.  All intended for medium risk, medium appreciation (e.g., 8% CAGR) over a 10+ year time frame.  Prices are at market close 26-May-2010.  Percentages are of total investment available.

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Portfolio A

  • Cash/Money Market 10%
  • Bonds  TIPS 5%   ACITX  $11.81
  • Bonds  Global 15%  TPINX  $12.69
  • Real Estate REIT 10% TVRVX   $19.74
  • Commodities Gold 5%  SGGDX  $27.89
  • Commodities General  5%  IGNAX   $15.59
  • Stocks 50% CWGFX   $29.47

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Portfolio B

  • Cash/Money Market 30%
  • Real Estate REIT 10% TVRVX  $19.74
  • Commodities Oil 5%  USO  $32.59
  • Commodities General  5%  IGNAX   $15.59
  • Stocks Large Cap USA 12.5% SPY  $107.17
  • Stocks Large Cap World 37.5%  VT   $38.88

Differences from portfolio A:  Bonds have little upside, and significant down side due to stock market correction, low inflation (TIPS), very low–unlikely to go lower interest rates.  Gold seems to be topping out,  Oil has fallen hard, along with the stock market.  To get 50% US and 50% rest of world exposure in stocks the ration of SPY to VT should be about 1 to 3.   ETFs substituted for oil and stocks to get flexibility and potential to do covered calls, and protective puts options.

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Portfolio C

  • Cash/Money Market 30%
  • Real Estate REIT 10% TVRVX  $19.74
  • Commodities Oil  10% USO  $32.59
  • Stocks Large Cap USA 25% SPY  $107.17
  • Stocks Large CAP World 25% VT  $38.88

Differences from portfolio A:  Bonds have little upside, and significant down side due to stock market correction, low inflation (TIPS), very low–unlikely to go lower interest rates.  Gold seems to be topping out,  Oil has fallen hard, along with the stock market.  Overweight US stocks, because of US market correction and poor prospects in Eurozone due to currency / debt issues.   ETFs substituted for oil and stocks to get flexibility and potential to do covered calls, and protective puts options.


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