Archive for March, 2013

Running with SPY

Saturday, March 30th, 2013

March 30, 2013

The last trading day for March was Friday.

My technical indicators say ” do nothing – except enjoy the ride “.

And, that is exactly what I intend to do .

SPY 123 Portfolio June 11, 2012  ( SPY / IVV / VOO blend ) is up 16.3%  and would be returning $162,636- on a $1 million investment.

SPY Jan 29, 2013 Portfolio ( blend ) is up 4.4%  in 60 days.

And my storefront FANTASY Portfolio is up 9.6% since January 1 –  This Portfolio is comprised of  FBT, KRE,  MOO,  QQQ,  SPY,  VEU, VNQ,  VTI, VZ, XHB, XLV.  I  hold  varying amounts of shares in all except MOO, QQQ, VEU, VNQ,  and XLV.

Here is how the index type ETFs I follow ended the first quarter of 2013:

SDY   + 12.7%,  VB  + 12.5%,  RPG + 12.2%,  + VO + 11.9%,   IJR +  11.5% ,   RSP + 11.3%,  DIA + 11.0%, QQEW + 10.7%,  VTI + 10.1%,  SPY + 9.7%,,  QQQ+ 5.6%.

I own all of these except RPG, DIA, QQEW, and QQQ.

Potential liquidation decision moved forward to April 30 when Charts versus ” Play till May”  will be tugging for a decision.

Richard Maurice Gore

Customizing SPY

Friday, March 8th, 2013

March 8, 2013

Year to Date Performance of  “Customized ” SPY ETFs

SPY     +8.8%

RSP   +10.2%

SDY   +10.8%

 

RSP is SPY  converted from investment  allocation based market capital weighting to equal weighting.   To illustrate, compare the top allocation, number 10 and number 25 in each portfolio..

In SPY the top allocation is Exxon which represents 2.96% of the value of the total 500 equity portfolio.  Number 10 is Pfizer which accounts for 1.5% of the total portfolio. and, at number 25, Qualcomm which represents 0.82% of the entire 500 portfolio.  On the other hand ( equal weighting ), Netflix represents 0.35% of the RSP portfolio, followed at number 10 by Genworth Financial – 0.25% and Pitney Bowes at number 25 representing o.23% of the portfolio’s value.  Exxon, Pfizer and Qualcomm are still in the portfolio with each representing about .023% of the total portfolio.  The net impact of the change to equal weighting is a tilt toward Mid Cap and Value performance ….with a bit more volatility.

SDY – This ETF holds the 60 highest yielding names in SPY that have increased dividends every year for the past 25 years.  The yield is presently 3.2% versus 2.04% for SPY.  Number 1 in allocation is Pitney Bowes at 2.91% of portfolio’s value ( yielding 10.69% ! ) , followed at number 10 by Johnson and Johnson ( 1.80% of portfolio ),  yielding 3.14%, followed by Eaton Vance Corporation at number 25 representing  1.43% of the portfolio with a yield of 1.98%.

An equally blended portfolio of SPY, RSP and SDY would have appreciated 9.93% since January 1, 2013 versus 8.8% for SPY alone.

I hold all three with SPY and cousins ( VOO , IVV and VTI ) accounting for 50% of value.

All buying and selling decisions for the mix are driven by SPY alone.

Richard Maurice Gore

A Rewarding SPY Ride

Tuesday, March 5th, 2013

March 5, 2013

Just to give you some idea of  the interesting profit potential of SPY and its cousins  ( VOO / IVV ), as of today, $ 1 million invested on June 11, 2012 has grown by $143,000 ( 14.4% ) in just under nine months with no SPECIFIC risk….just MARKET risk.

In his latest letter to Berkshire Hathaway shareholders, Warren Buffett compares Berkshire performance to SPY indicating that SPY beat Berkshire on the latest year to year comparison and that SPY will probably always outperform Berkshire in better than  good market years.  What else is left to say ?  If Buffett’s Berkshire can’t outperform SPY, what do you think of your chances  ( or others managing your financial investments )  to outperform  Warren Buffett ?!!

I suggest you read the full text of Buffett’s  2013 letter to Berkshire Hathaway shareholders.

So, for me, that narrows everything down to one variable, TIMING the market……  And for me ( and you, as a layman investor, )  that’s a lot easier to deal with than the multi dimensional array of risks  offered by individual companies.

Richard Maurice Gore