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mach316
LSU Fan
Jonesboro, AR
Member since Jul 2012
1786 posts

re: Stock Diversification Question


quote:

If you can tell me when the dips are coming, I'd like to know.


I'll give you a hollar slack!






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matthew25
Ole Miss Fan
Member since Jun 2012
3276 posts

re: Stock Diversification Question


Slack - can you recommend some JPM funds? Thanx.





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matthew25
Ole Miss Fan
Member since Jun 2012
3276 posts

re: Stock Diversification Question


I just looked at Zack's top 5 JPM funds. Lots of 2-star with high risk.

No thanks.







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dwr353
LSU Fan
Opelousas, La
Member since Oct 2007
439 posts

re: Stock Diversification Question


I like COP and ETP(both great dividends, profitable, and good long term holds). S&P gibe both a buy rating also if that is important to you. ETP bought out Sun Oil.





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dwr353
LSU Fan
Opelousas, La
Member since Oct 2007
439 posts

re: Stock Diversification Question


If you feel a little adventursome, look at PVA. It trades at a little more than $4 and runs up to 5 to 7 pretty often. Has a book value of over $17. I would not bet the bank on it but I have made money on the turnaround. Added more to my account today.





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matthew25
Ole Miss Fan
Member since Jun 2012
3276 posts

re: Stock Diversification Question


I just looked into PVA on the WSJ. As you say, looks like a good speculative buy. 5.5% dividend at this price, and tons of upside (which means it has come down, a lot!).

Thanks.






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slackster
LSU Fan
Houston
Member since Mar 2009
5681 posts

re: Stock Diversification Question


quote:

I just looked at Zack's top 5 JPM funds. Lots of 2-star with high risk.

No thanks.



How old are you? Look into JPMorgan SmartRetirement funds. If you're in your late 20s through your 30s, you may be interested in JSAAX. If you are saving for retirement, it will compensate for your lack of knowledge. Morningstar rates it 3 stars, but it has beaten the sleeves off of Vanguard's 5-star rated VTIVX even after you compensate for the up-front cost of the A-shares.

Long story short, those ratings are relatively useless.






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matthew25
Ole Miss Fan
Member since Jun 2012
3276 posts

re: Stock Diversification Question


Let's examine JSAAX (target date fund; 80/20 blend)

3-star (ok); below avg risk (good); avg return (meh); minus 5% in 2011( ); exp is .29 (good); FM experience is 6 yrs (good); YTD return is 5.6% (good).

Oh yeah, you are a financial rep, aren't you? That's why you love the 4.5 % upfront load?

My guys at Raymond James say I can do better

What else you got?






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matthew25
Ole Miss Fan
Member since Jun 2012
3276 posts

re: Stock Diversification Question


By the way, I'm early 50's, going to retire at 55.

I have 21 mutual funds, including 13 Vanguard (my advisors say I am "overgrazing," i.e., Dave Ramsey says he only holds 4 funds, including AIVSX and AGTHX).

Never had interest in VTINX because it lost 2.5 % in 2011. It also has a new fund manager.







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dwr353
LSU Fan
Opelousas, La
Member since Oct 2007
439 posts

re: Stock Diversification Question


Do not buy based on dividends. They are not regular. It is a company that will run up 25% or more for good profits(works better in tax-deferred accounts). I like natural resource companies with assets surpassing the stock price.





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matthew25
Ole Miss Fan
Member since Jun 2012
3276 posts

re: Stock Diversification Question


Thanks for the heads up on PVA. MSN Money lists the stock as 5% plus dividend, yet shows only a 6 cent one time distribution last year.

TDAmeritrade shows irregular dividends, as you say.

Purely a spec buy. I bought MHR last summer on the same basis @ $3.50.






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Lsut81
USA Fan
Member since Jun 2005
61442 posts

re: Stock Diversification Question


I was just coming to bump this thread... Boeing is up over $81 now

And that is before the 787's are even cleared to resume flight. Thinking it may go north of 85 by summer.






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tirebiter
LSU Fan
ATL
Member since Oct 2006
5053 posts

re: Stock Diversification Question


quote:

Never had interest in VTINX because it lost 2.5 % in 2011. It also has a new fund manager.



Nah, it was +5.25% in 2011, and it is a fund of funds with fixed allocations, so who cares if it has a new manager, nothing would change dramatically regarding the holdings, although I could see them changing VTINX to the short duration TIPS fund from the current TIPS fund and potentially add a sliver of international bonds when the new US$ hedged fund comes out in a few months. One would buy the fund for its low volatility and 70% exposure to fixed income/cash, ie a retiree or big investor looking to minimize downside while maintaining exposure to global equities in one fund, its meant to simplify investing for those that want to reduce the number of funds they own.






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dwr353
LSU Fan
Opelousas, La
Member since Oct 2007
439 posts

re: Stock Diversification Question


Was 4.10 when I posted yesterday. Is now 4.40. I usually buy around 3000 shares so I only have about $12000 riding on it. Last time it ran up I sold at $6.50. Nice $7500 gain in about three months. I have it in a Schwab account so the comm is only $8.95 on each side. Doesn't take long to add up when you do this.





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slackster
LSU Fan
Houston
Member since Mar 2009
5681 posts

re: Stock Diversification Question


quote:

Oh yeah, you are a financial rep, aren't you? That's why you love the 4.5 % upfront load?



1st of all, I somehow confused you with the guy with the OP, hence a target date fund for easy diversification.

2nd, the upfront load is irrelevant. I'm assuming you're just busting my balls, but I'm not getting the commission from the OP so what does it matter?

quote:

My guys at Raymond James say I can do better


Say you can do better than what? It is a target date retirement fund, and one of the best ones for 2040s.

quote:

What else you got?


What am I advising you on? I'll play along, but what is your risk tolerance? Time frame? Income? Growth? ...






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slackster
LSU Fan
Houston
Member since Mar 2009
5681 posts

re: Stock Diversification Question


quote:

Dave Ramsey says he only holds 4 funds


Dave Ramsey has assets in a wide variety of classes. That may be all he needs for equity/bond exposure.

quote:

I have 21 mutual funds, including 13 Vanguard (my advisors say I am "overgrazing


Your advisors are likely correct. You are probably overweight and underweight in quite a few sectors and/or asset classes.

quote:

Never had interest in VTINX because it lost 2.5 % in 2011


I don't see what 2011's performance has to do with anything. JSAAX beat the S&P by 3% in 2008, 8% in 2009, 1.75% in 2010, and 2.3% in 2011. So what if it underperformed by 6.5% in ONE year out of the last five?

quote:

By the way, I'm early 50's, going to retire at 55.


And on paper, your life expectancy is 85-88, so you need to have assets that are poised for growth up to and through that age. Don't think that because you are retiring soon all of your assets should be in income funds.






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matthew25
Ole Miss Fan
Member since Jun 2012
3276 posts

re: Stock Diversification Question


Good catch. I meant VTIVX.

I do have VTINX in portfolio, along with its sister VTENX. They will be merged at some point.






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matthew25
Ole Miss Fan
Member since Jun 2012
3276 posts

re: Stock Diversification Question


We agree.

And Dave is heavy in real estate.

Don't really want to live to 85. I'll check out how Sir Paul Mc. made the "arrangements" for his wife, Linda.






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matthew25
Ole Miss Fan
Member since Jun 2012
3276 posts

re: Stock Diversification Question


Back to the OP. I enjoyed an article dated Jan 23 by Christine Benz - A Sample Retirement Portfolio in 3 Buckets - for a retired married couple with $1.5Million assets.

She recommends $120K in CD's/money market/other cash. Equates to 8% cash holding.

Also recommends: $450k in VIG (VDAIX); $200k in both VTI and VEU; and $200K in PIMCO Tot. Return E:BOND. The amounts can be adjusted for larger or smaller asset pools.






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