Portfolio for 25-Year Old: The Positives and Negatives

As a followup to William Bernstein’s e-book, “The Ages of the Investor,” what might a portfolio look like for a 25-year old investor?  The following portfolio is built around 15 ETFs that cover the U.S. Equities market, developed international markets, commodities, emerging markets, both domestic and international REITs, sovereign debt, bonds, and treasuries.  In other words, we are diversifying all over the globe.

Premium membership is available for $5.00 per month.

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New E-Books From William J. Bernstein

Do you desire a fresh infusion of investment information from William J. Bernstein?  If so, here is the way to obtain his latest writings.  First, go to his Efficient Frontier web site and read “The Ages of the Investor.”  If his brief introduction appeals to you, then whip over to Amazon and download into your Kindle (or other formats) his latest writing.  Here is a sample of what to expect from his new project.  As Bernstein warns readers, expect to be stretched as you read this material.

What I am thinking of doing is taking his writing and developing some sample portfolios for different age brackets.  Perhaps beginning with a 25-year old and then moving up ten years at a time.  Even so, each of our situations vary so much that it is difficult to develop the portfolio that is exactly right for an entire group of 25-year old or 35-year old investors.  For example, if you are 75 years old and receive social security income plus a pension, the portfolio would be different than if one only received social security.  If the portfolio is not needed for income, one can take on more risk, even at age 75.

While I have no way of knowing, I suspect many Platinum members fall into an older age class of investors.  If you are young, count your good fortune to begin saving at an early age.  That is the critical move.

As you are reading Bernstein’s Efficient Frontier, check out his list of reading material.  Many of his recommendations are also on my long list of books.  I definitely would add Evensky’s “Wealth Management” even though it is geared toward advisors.  Evensky defines and carefully explains in great detail many investment terms.

It will be interesting to follow Bernstein and see what he develops as he writes these short e-books.

How does one translate Bernstein’s writing into a workable portfolio for a 25-year old investor.  Stay tuned.

Bullish Percent Indicators: 3 November 2012

A few more changes developed this past week in both index and sector Bullish Percent Indicators.  In some cases the market strengthened while in others it weakened.  As you look over the tables, ask yourself if you see any particular trends.

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