Mock Portfolio Investing: Index Portfolio

This is my sample of an index long term investment account. To be honest, I wasn’t going to post this, because superficially it looks like a cop out, but there is a method to my madness. Once again here are a few assumptions:

  1. This will assume a starting value of $100,000. Sounds like a lot, but I don’t think anyone should have anything other than a S&P index until they reach the $100,000 level or higher. If you are under 30, I would keep it all in a small and mid cap index.
  2. This is long term investing, not day trading. However, I will opt to sell any securities and go to a larger position in cash should the markets show significant weakness, however I will buy back in with any significant market strength.
  3. I like ETF’s over Mutual Funds to index for the simple reason of fees and expenses. ETF’s, in my opinion, are a much more efficient vehicle, and without the hassle of end of day trading.
  4. I use mostly, well actually predominantly, Vanguard funds for indexing. I am not married to Vanguard and will explore other options, but for the most part, I think they offer the best product for most applications I use.
Ticker Shares Paid Last Current Value % Gain $ Gain
SH 598 $33.40 $33.39 $19,973.00 -0.03% -$5.98
PSQ 495 $40.40 $40.08 $19,980.00 -0.80% -$158.40
Cash $60,008.02

My plan is to short the market with SH and PSQ anticipating a correction sometime soon while maintaining cash to jump back in when I believe the markets have stabilized. Who knows where that will be, a 5% correction or a 25% correction, I don’t know. Either way I will ride that 5% – 25% on the way down and ride it back up when I jump back in. There will be plenty of skeptics out there regarding this form of market timing, but I have been doing it for years, and it has worked well for me.

If I were to start a new portfolio today, this is exactly how it would look. This is not the market to be buying in at this point as it is long due for a correction and very overvalued. My actual index portfolio, looks very different than the one seen here. My real portfolio has been maturing over several years. I want to keep this as realistic as possible with a start date the same as my other mock portfolios to maintain some sort of consistency.

WATCHLIST:

VOO @ 165 – 180, VTI @ 90 – 101, VYM @ 75, VNQ @ 80, VCLT @ 88, VPU @ 105, VDC under 135, VWO under 37, VOE < 95, VBR under 110, VGT < 125, VPU < 105, MGV < 61, VWO < 36, MGK < 87,  VB < 118,

Leave a Reply

Your email address will not be published. Required fields are marked *