Lately I have been having trouble identifying companies that have attractive long term entry points. I still don’t believe that this market is going to run forever- I think we are due for a major pull back within the next six months. This is when I plan on jumping back in on individual stocks. But what if I’m wrong? What if we continue to rally through the elections, QE2, and then the holiday season? I would hate to have money collecting dust under my mattress.
I decided to invest 20k into broad based high paying Dividend paying ETFS. I figure this will be a good solid base for my portfolio.
Currently I am invested in:
| Symbol | Description | Yield | Average Yield |
| INGBX | ING GLOBAL BOND A | 6.31 | |
| PGF | POWERSHARES FINANCIAL PREFERRED | 7.16 | |
| PFF | ISHARES S&P US PREFERRED STOCK INDEX | 7.37 | |
| JNK | SPDR BARCLAYS CAPITAL HIGH YIELD BOND | 9.82 | |
| IDV | ISHARES DOW JONES EPAC SELECT DIVIDEND | 4.33 | |
| IAU | ISHARES COMEX GOLD TRUST | 0 | |
| DVY | ISHARES DOW JONES SELECT DIVIDEND | 3.53 | |
| | | | 5.50 |
This portfolio gives me broad exposure to equities, preferred shares and bonds from across the globe with an average yield of 5.5%. I included a small position in gold in the portfolio as I view the commodity as hedge against both inflation and deflation (go figure). I think any portfolio in this market should have some exposure to this commodity.
Depending on how my financial situation shapes up in the next few months, I will hold onto these ETFS and add single equities as opportunities arise.
On a separate note, you will rarely see me buy growth stocks outright. I would rather spend my money on long term investments with little beta that appreciate over time. This allows me to play the momentum stocks with options- as it allows me to control a greater amount of shares with less exposure. Stocks that have momentum are great trades, but are not great investments.
All the best,
CM
Craig,
ReplyDeleteIf you bought Apple (AAPL) at 15 and held it for 14 years, would you not consider that a growth stock held? I'll wager you that entire portfolio that you have given (which I think is a good one) over 10 years to see what 20k would be worth during the same time frame of 14 years.
John D.
(Holding since 1997).
John,
ReplyDeleteIts hard to argue with a $15 entry point on AAPL. Congrats.
My point is this: For every can't miss growth story- there are 20 that fail.
I would rather invest in stable div companies and play growth stocks using options.
Best,
C
I just started reading your blog as I have recently become interested in toying w/ options while still contributing the bulk of my investments to Vanguard mut. funds (to take me out of the equation)...
ReplyDeleteCan you recommend a reasonable starting point to understand what you are doing w/ Apple and other options I am reading about? I am excited, but confused....
Some excellent stocks.
ReplyDelete