After nearly 2 years of refinement, experimenting (and meditation!), we are back on our blog with regular posts on Market direction, trends, techniques, lessons learnt, and last but not the least, risk-management. In addition to our regular features, we are also looking to create a couple of model funds and (figure out a way to) track the fund's investments and performance through-out the year. These model funds will, for the most part, have the same or similar investments that we would have within our own personal portfolios. We are considering two types of funds. One an aggressive and risk-tolerant fund. Another a moderately-aggressive and low-risk fund. Shouldn't there be a non-agressive or a conservative version you ask? If you know our philosophy of wealth-management from our early posts you should know that the portion (pie) out of your entire net-worth that you are using for investing in stocks is already the one that is meant for actively-managed investing in stocks (with our primary emphasis on risk-management and wealth-preservation). That means it is understood that you have the other portions of your wealth well covered for an overall balanced and diversified wealth-management scheme (like owning a home/property, having a good life-insurance, having put in place a living-will/trust, having an emergency fund, investing in learning/schooling/new-skills to make a living, staying healthy, etc). While we plan to cover a 360-degree persoal finances and wealth-management aspects in the future, at this stage, our blog's focus will be limited to managing your investable funds in the stock-market, be it your IRA/401K or your personal/individual invement account.
About the Model Funds:
We hope to setup and start this feature right on-time for the new-year! We are still figuring out the best way to post/publish/track the fund online. We may create and manage this either on some online stock-portfolio simulator/tracker (like investopedia.com) or with simple charts on our own blog under "Investracker" tab. (We wish we could keep our subscription to the covestor.com site, but they have discontinued their 'performance-tracker' service for members who are not advisors/model-managers. We hope to be a registered advisor or model-manager sometime in the future either on covestor.com or on our own). Here are some aspects of the two funds we are considering.1. The Fast-and-Furious Fund:
Don't let the name decieve you though! Keep in mind it is all about risk-managment and capital-preservation. This is the aggressive, risk-tolarent fund with active and short-term trades with stocks held anywhere between 2+ weeks to 2+ months typically. In most cases will avoid holding a stock around the quarterly earnings release of the concerned company. Stocks selected for this fund will be mainly based on technicals than fundamentals. Stocks will mostly be a blend of micro-cap, small-cap, mid-cap and occasionally a large-cap stock. No short-selling or no options-trading.2. The Slow-and-Study Fund:
This is the moderately-aggressive and low-risk fund. This will consist of stocks with good technicals and also decent fundamentals. Although, buying and selling timing will still be based on technicals. This fund mostly will constitue mid-cap and large-cap stocks, may occasionally have international stocks and ETFs and may switch to bonds or cash at times of market corrections/down-trends. No options-trading or short-selling but may invest in ETFs that short stocks. Will not invest in any kind of leveraged ETFs.Stay tuned for more details soon. Very soon!
