We have seen in previous post, the importance of having a reserve of cash or bonds in your investment portfolio in order to better balance the risk of a stock market downturn and to have a lot of cash to put in the market and profite of the downturns.
I have decided to go on Reuters.com and open three different public portfolios, with three management techniques. These portfolios will be managed/balanced every three months but you will always be able to check their performances on Reuters.com
The first portfolio: MyIdealPortfolio is a balanced Bond/Stock portfolio with a recurring cash
investment of 1.000 euros/month and an initial deposit of 100.000 euro. Mainly based on ETFs.The initial composition has been made taking into account:
-my opinion that we are at the end of the bear market, that means that the bond/cash portfolio should be 30% maximum (I advice to read "The Intelligent Investor" by Graham for what concerns portfolio allocations: from 25/75 to 75/25 for the Bond/Stocks ratio according to the sentiments o the market and the exposure of the owner to the market risks).
- a leveraged ETF can increase our exposure to the potential high gains the markets will have at the beginning of the Bull market, this percentage will change over the years in favor of ETF on stock market or ETF on Bonds
- The choice of ETF is to better spread the risks over different stock
-10% put into one stock we consider unevaluated and with great potential. I think Ja Solar Holdings has a lot of potential (we will see in other post why).
The second portfolio is dedicated to value stocks with solid fundamentals financial ratios: theScreener. It is all stocks.
The third is trying to hunt the best "penny" stocks available on US markets. CheapStocksHunt. Low price with good fundamentals.
These two last portfolios have been created and their will be managed with the help of Google Stock Screener, which I suggest to all persons who desires to invest in US markets. Hoping that soon it will be available for other markets too.
During following months and, hopefully!!, years we will monitor their performances and we will see which are the best strategies for each type of investor.
During following months and, hopefully!!, years we will monitor their performances and we will see which are the best strategies for each type of investor.
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3 comments:
Dear,
I want to make 1 guest post in your blog, if you permit me. The post contains 350 words above and totally unique as it is written by my content writers.
Please contact me at ericasmith568(at)gmail.com soon. Moreover, I will place your link in one of my finance sites.
Maybe your list of results should include some kind of average of what most other equity index funds did. It’d be very convincing if some of your index fund examples beat the average. Even better if they beat more than half the other funds or had above median return.You can also find information about about Currency rates
Excellent research on stocks.
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