Introduction of two sample portfolios: Balanced and Pure Stocks
Two portfolios to inspire your investments
Hello guys,
I hope you are all fine!
I would like to introduce you some news regarding the newsletter: I am going to add a new service for people interested in long term investments.
I will propose two portfolios, different one from each other:
Balanced Portfolio: a multi-asset portfolio, with a balanced risk and only made by ETFs (and very few crypto).
Pure stocks: This is a more aggressive portfolio, only made by single stocks.
The two portfolios have been designed literally to suit all budgets!
Let me better introduce the two investment ideas.
THE BALANCED PORTFOLIO
If you desire to invest with a more relaxed and passive approach, you will love this portfolio. It has been designed for people who want to start to invest part of their monthly income, with a balanced risk and an time horizon not lower than 3 years.
The portfolio will invest in different asset classes: equities, bonds, commodities, and crypto too.
Which financial instruments will be included? Mainly ETFs. The small investment in crypto will be made directly in single crypto, not through ETF (I really don’t like the BITO ETF). There will be at least 10 names, in order to have high diversification.
Moreover the portfolio will invest in every global region: there are no limits.
How the portfolio will be structured?
Basically I decided to separate the portfolio in 2 main parts:
Core (70%)
Discretionary (30%)
The Core component is exclusively made by ETFs, on equities, bond and gold.
In the last 11 years, the core portfolio returned more than 10% on an annualized basis, with a daily volatility close to 0.7%. (Remember that past results are no guarantee of future performance).
This part of the portfolio is assumed to be more static: very low changes will be applied, only in case of big market events: the strenght of the passive investment approach will make the job.
The discretionary part is a more active component. It will include ETFs and crypto and even short-medium term ideas, in order to exploit any potential market opportunity.
The discretionary component will add a spicy and speculative taste to the portfolio.
This is a portfolio that will perfectly match with a dollar cost average approach (here a good explanation of Dollar Cost Average).
For the above reason I will not only present the portfolio and the weights of every instrument, but every month (once or twice, depending on market period) I will suggest you what ETFs to buy, with the relative weight.
Since I have an international audience I will publish two ETF portfolios: one for the USD investor, and one for the EUR investor. The currency risk is important, and I will help you to manage it.
Furthermore, I would suggest you to use a broker that let investors to buy fractional shares, especially for people who want to invest a small amount of money every month. Every decent and modern broker has this feature.
The rebalancing will be a very relevant process: for example, if the weight of the emerging markets becomes too high, because of strong performance, I would start to reduce the purchase of that specific ETF, especially if I think that the asset class will start to underperform.
Obviously, the discretionary part of the portfolio will require more attention regarding the monthly purchases and it will be subject to more tactical changes.
PURE STOCKS PORTFOLIO
The Pure Stocks Portfolio is a riskier and more concentrated portfolio.
Only people that are available to afford higher volatility and drawdown can invest in a portfolio like this.
The portfolio will include at least 10 stocks, and ideally no more than 30. The stocks will be selected among all the global regions, but only on companies listed in US (international stocks through ADRs).
The stocks will be selected following two criteria:
Long-term growth
Speculation
This is important, because I will manage in a different way the two categories.
Long Term Growth rules:
Stocks will be selected based on both fundamental and technical analysis. I will only select companies that have a promising business, high Moat, and a large growth ahead.
The loss tolerance will be higher, especially if the growth story will remain intact.
Even time tolerance will be high: sometimes weeks or even months are needed before to see a stock starting a bullish trend. I will wait for that.
Speculative stocks:
Stocks can be selected even based on a pure technical approach or looking for a temporary rebound. Just to be clear, I won’t make day trading. These plays will still have a short-medium time horizon.
Low risk tolerance: all the trades will be proposed with a stop loss. If the stock will close below the stop loss, the day after it will be sold at the opening.
If the trade will not pay in a few weeks, I will look for another trade.
The risk management is very important in a portfolio like this. For this reason I will give a bigger weight to stocks in which I have high confidence. The riskier trade will be seized in an appropriate manner.
Even for this portfolio I will suggest to follow a dollar-cost-average approach (that is generally a good idea). Every month I will post the monthly purchases.
Please remember that this is not a financial advices, but two ideas of asset allocation for people who are looking for inspiration for their investments.
Moreover in this way I will show you in a practical way my view on markets and investments.
HOW TO SUBSCRIBE
This new service will be only available for paid subscribers.
I have now created a paid subscription service here on Substack.
The monthly subscription cost will be 12$.
If you want to subscribe, please use the button below.
To sum up, by subscribing to the service you will receive every month:
Updates on every asset allocation change for the two portfolios
An explanation of the stocks I decided to buy or to sell
The monthly purchases, for people looking to invest every month
Finally, you will support my work, here and on Instagram, where I post everyday useful market insights!
Please note that I will continue to post my free article! I will try to keep posting 3 free articles per month, as I am currently doing!
I will post the two portfolios next week, starting from the balanced one!
Thank you for your attention!
Best regards,
Market Radar
Disclaimer: Market Radar is not an investment advisor. Any information provided as part of the services is impersonal and not specific to any person’s investment needs. You acknowledge and agree that no content published or otherwise provided as part of any service constitutes a personalized recommendation or advice regarding the suitability of, or advisability of investing in, purchasing or selling any particular investment, security, portfolio, commodity, transaction or investment strategy.