I've been buying and selling stocks for several years now; however as I get older it I'm trying to round out my portfolio. What would be a good percentage breakdown of large, mid, small, international stocks/funds to have for a person in his late 20s.
As far as risk is concerned, I'm quite tolerant and comfortable with being very aggressive with equities.
Where can i find more information about this topic w/o having to fork out $150/hr for professional advice....
2006-08-09 16:36:28 · 7 answers · asked by noodleshopceo 2 in Business & Finance ➔ Personal Finance
I do it this way:
30% Large US
30% Small/Mid US
30% Diversified foreign
10% Play money
2006-08-09 16:41:55 · answer #1 · answered by Anonymous · 0⤊ 0⤋
A good book is Jim Cramer's "Sane Investing In An Insane World".
I would break the diversification down by sectors: An energy company, or energy service company to take advantage of rising energy prices (oil producers like XOM, natural gas producer, refineries, energy transpor like HAL). A major bank/financial services company (Citibank, Wells Fargo, Bank of America). A consumer products company (Proctor & Gamble). Also a food products company (Pepsi is a good choice). An industrial company (like United Technologies, GE, or heavy equipment makers like Caterpillar). A gold/precious metals mining company or fund. Then you need a speculative investment that you can use to swing for home runs, like a bio tech company, or other hi technology industries. That's for the higher risk portion.
I would stick with industry leaders, the best in their field.
2006-08-09 19:42:09 · answer #2 · answered by Me-as-a-Tree 3 · 0⤊ 0⤋
I suspect you will get a slightly different take from each person offering advice. Most of the investment sites have such formulas. Since you have done lots of stock trading you likely have on-line access. I happen to like T Rowe Price, Ameritrade, ETrade and Yahoo Finance. Seems like you are doing well. Investing early, taking some chances while you are young enough to recover and looking ahead. Good luck.
2006-08-09 16:51:51 · answer #3 · answered by murphy 5 · 0⤊ 0⤋
I'll give you my personal distribution. Its on the contrarian side, but if you've been investing a few years, you can probably understand why I'm a little skeptical of this great economy we supposedly have, especially considering the mountains of debt we continue to accumulate without even batting an eye:
US Equities (All Dividend, P/E <20) - 25%
Foreign Trusts (non-dollar) - 25%
Foreign Equities (non dollar)- 15%
Currencies (non-dollar) - 10%
Commodities (ETF, Futures, physical, options) - 25%
This gives me flexibility to capitalize on variety of possible macro scenarios, with a good deal of hedging.
Hope this helps!
2006-08-09 16:46:57 · answer #4 · answered by byebye 2 · 0⤊ 0⤋
Since you are young and comfortable with aggressive investments, I would say 60% higher risk, 20% mid and 20% low.
That way, you can still get good returns and still have a portion in mid to low risk investments.
2006-08-09 16:45:29 · answer #5 · answered by Ryan rox 3 · 0⤊ 0⤋
10% bear market mutual fund
80% gold and silver bullion
10% money market/cash
2006-08-09 16:48:02 · answer #6 · answered by -* 4 · 0⤊ 0⤋
online at fidelity.com for an analysis. free
2006-08-09 16:49:13 · answer #7 · answered by zocko 5 · 0⤊ 0⤋