Just One Man's Opinion - 04 August 2005
by JMac
THE BALANCED PORTFOLIO
A balanced portfolio is one in which the investment styles are blended. It is not balanced by sectors, but rather by investment styles, e.g. growth, growth and income, value and speculative. It is for the investor who wants some return, some safety and is willing to take some risk. It requires an investor to be patient and nimble. That sounds counterintuitive, but it is not. The investor must be willing to constantly review his or her holdings to ensure they still have the extrinsics and fundamentals that caused them to be attractive in the first place. For instance, drillers are red hot right now and should be in any growth portfolio. However, if oil prices slumped, as they did in the early 80's, then they become speculative plays. Likewise, if the Fed suddenly turns and starts lowering interest rates then housing and bank stocks become growth and income.
If you do not have the time to do the homework each week there are dozens of mutual funds out there which qualify as "balanced funds". If you would like my favorites, contact me by leaving a comment in this thread. Remember: only no-load funds and no funds with an expense ratio higher than 1% .
Meanwhile, here are my suggestions for a balanced portfolio ( G = Growth, G & I =Growth & Income, V = Value, S = Speculative High-risk High-reward) :
AVON - V
MICROSOFT -V
NATIONAL CITY - V
QUALCOMM - G
GENERAL MILLS - G
MOTOROLA - G
IRON MOUNTAIN - G
SCHLUMBERGER - G
WEIGHTWATCHERS - G
STARBUCKS- G
HONEYWELL - G
BOEING - G
COMCAST - G (nice quarter guys!)
WALGREENS - G
HALLIBURTON -G
UNITEDHEALTH - G
ANHEUSER BUSCH - G
SYSCO - G
FEDEX - G
UPS - G
HONEYWELL - G
ALTRIA - G & I
BANK OF AMERICA - G & I
EXXON - G & I
J & J - G & I
PROCTER & GAMBLE - G & I
COKE - G & I
GE - G & I
DUKE ENERGY - I
HARRAHS - S
APPLE - S
IBM - S
CORNING - S
GENETECH - S
GM - S
Mix and match to your delight.
AVOID -autos, airlines, money center banks, defense, and retailers, except, perhaps, Nordstrom, Coach, Wal-Mart, J.C.Penney and Sears on pull-backs.
GOOD LUCK !
THE BALANCED PORTFOLIO
A balanced portfolio is one in which the investment styles are blended. It is not balanced by sectors, but rather by investment styles, e.g. growth, growth and income, value and speculative. It is for the investor who wants some return, some safety and is willing to take some risk. It requires an investor to be patient and nimble. That sounds counterintuitive, but it is not. The investor must be willing to constantly review his or her holdings to ensure they still have the extrinsics and fundamentals that caused them to be attractive in the first place. For instance, drillers are red hot right now and should be in any growth portfolio. However, if oil prices slumped, as they did in the early 80's, then they become speculative plays. Likewise, if the Fed suddenly turns and starts lowering interest rates then housing and bank stocks become growth and income.
If you do not have the time to do the homework each week there are dozens of mutual funds out there which qualify as "balanced funds". If you would like my favorites, contact me by leaving a comment in this thread. Remember: only no-load funds and no funds with an expense ratio higher than 1% .
Meanwhile, here are my suggestions for a balanced portfolio ( G = Growth, G & I =Growth & Income, V = Value, S = Speculative High-risk High-reward) :
AVON - V
MICROSOFT -V
NATIONAL CITY - V
QUALCOMM - G
GENERAL MILLS - G
MOTOROLA - G
IRON MOUNTAIN - G
SCHLUMBERGER - G
WEIGHTWATCHERS - G
STARBUCKS- G
HONEYWELL - G
BOEING - G
COMCAST - G (nice quarter guys!)
WALGREENS - G
HALLIBURTON -G
UNITEDHEALTH - G
ANHEUSER BUSCH - G
SYSCO - G
FEDEX - G
UPS - G
HONEYWELL - G
ALTRIA - G & I
BANK OF AMERICA - G & I
EXXON - G & I
J & J - G & I
PROCTER & GAMBLE - G & I
COKE - G & I
GE - G & I
DUKE ENERGY - I
HARRAHS - S
APPLE - S
IBM - S
CORNING - S
GENETECH - S
GM - S
Mix and match to your delight.
AVOID -autos, airlines, money center banks, defense, and retailers, except, perhaps, Nordstrom, Coach, Wal-Mart, J.C.Penney and Sears on pull-backs.
GOOD LUCK !
posted by TandaPundit at 5.8.05
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