We use S&P 500 index as one of the benchmarks against which we measure performance of the model portfolios. We also use the index as one of the components of the buy-and-hold portfolio, and also of the trend following portfolio.

S&P 500 is an index of 500 large capitalization companies in the United States. Many mistakenly say it's an index of 500 biggest US companies - this is not correct. But it does represent quite well large companies in the US. It is vastly preferable to the Dow Jones index - much better known, but consisting of only 40 stocks.

For trading and tracking purposes, we will use a "spider", ticker symbol SPY - an exchange traded fund that mimics the S&P 500 index. Here are top ten holdings of the SPY - notice that even the biggest of them do not exceed 4% of the index.

AT&T INC.               1.87%
BK OF AMERICA CP        1.57% 
CHEVRON CORP            1.43%
CISCO SYS INC           1.47% 
CITIGROUP INC           1.53% 
EXXON MOBIL CP          3.74% 
GEN ELECTRIC CO         3.09% 
JOHNSON AND JOHNS DC    1.38% 
MICROSOFT CP            2.17% 
PROCTER GAMBLE CO       1.59% 

We invite you to check with us now and then and see how the portfolios are doing. 2008 is shaping up to be a very interesting year.