Model portfolio - buy-and-hold


Our buy and hold portfolio is equally weighted among 3 ETFs - SPY, QQQQ, ADRE.

To achieve a broad exposure to the United States economy we used SPY (S&P 500 index).
To get exposure to growth stocks, we used QQQQ (Nasdaq-100 index) - mostly high tech and biotech.
Finally, to get exposure to foreign growth, and to hedge the falling dollar, we used ADRE (Bank of New York Emerging Markets 50 ADR index).

Normally, it is recommended that a smaller proportion of a portfolio be exposed to foreign markets, but given the weakness of US economy, and the weakness of the US dollar, we decided to increase foreign exposure in our portfolio.

Rules for trading:
We entered the market on January 1st, 2008, and we shall continue to hold the portfolio without any changes. It may be interesting to note, that since S&P500 and Nasdaq-100 change their composition from time to time (they remove companies deemed no longer appropriate, and replace them with better performing companies) - our portfolio will over time remove some less than stellar companies, and replace them with faster growing companies. However, since this happens within an index itself, we need not take any action.

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.

 

 


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