My Q2
- From: "Jerry" <nospam@???>
- Date: Sat, 30 Jun 2007 09:20:44 -0400
My YTD returns are 11 %. My YTD return at the end of Q1 was 2.6%. If I eliminate a cash position from the calculation, returns would be 14% YTD. My benchmark is the S&P. Therefore, I am very pleased with these results. I normally carry a minimum of 20% in cash just as insurance against some sudden catastrophic event. I kept expecting a major correction this Q and carried 40% in cash a lot of the time. My biggest mistake was carrying this large cash position. I now have mainly given up on second guessing the market and just react as things materialize. Early in the Q, I decided to somewhat modify my strategy and got mostly out of sector weightings, commodities, and international. This allows me to concentrate and monitor less volatile allocations where I am quite comfortable that will meet my objective. My biggest positive move was heavily increasing my weightings in the Canadian oil REITS. Currently, my only losing positions are a small amount in gold and a couple of speculative stocks. My biggest winning positions are the oil REITS.
My objective is to beat the S&P. I don't feel I have the ability to manage a large portfolio of stocks. Thus, my strategy to meet my objective is to have core investments in mutual funds and ETFs that are currently outperforming the S&P. I do complement these with a handful of stocks that look good to me. I monitor all investments and change selections should one deviate from my objective. I also weight the best performers within my selections. I heavily weight the mid cap funds/ETFs. In the past, I have weighted sector and country funds and mostly profited, but these are volatile and thus are difficult to monitor against my objective. I move considerable amounts into cash during corrections and back into equities once I feel the correction has ended. I consider my strategy to be very conservative, easy on the nerves, and simple, but yet very effective in meeting my objective.
Currently, my major fund and ETF investments are FLVCX, FSLSX, PWJ, and PWP. All of these are handily beating the S&P (my objective). My major, by far, stock positions are HTE and CNE. The dividend alone on these meets my objective. Thus, any capital gain is a bonus. I especially like the ETFs of PWJ and PWP since they track the S&P, but outperform it. I sell these on market corrections and buy them back once I feel the correction is over. I do some of this selling and buying back with stocks and mutual funds, but am limited by my mutual funds' 30 day sell rule. I do have a few small speculative stock positions which are definitely outside my strategy, but this keeps my adrenaline level up and provides a bit of fun.
Current rough allocations are general market Mid Caps (43%), cash (27%), energy REITS (19%), International (6%), Misc. (5%).
Going forward, I plan on fairly quickly reducing my cash position, based on market conditions, Otherwise, I'll just continue with my current strategy.
Hope Y'all are having a great year.
Jerry
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