Wednesday, February 19, 2014

Barbell portfolio up 11.03% YTD

I no longer own any REM, the mREITs ETF offered by iShares in the States. It is my wife who now has an investment in the five digits in REM. With her in, I was out. I disposed of my holdings. No sense both of us getting into an investment neither of us completely understands.

At the beginning of the year, I set up a faux barbell portfolio anchored by MORL at one end and cash held in a high yielding cash account (TDB8150) anchoring the other. That faux portfolio is up 11.03 percent for the year and it is spewing cash at a phenomenal rate. If I had put my retirement funds into my admittedly goofy barbell portfolio, I could sell all today and have enough profit to last three years in retirement.

What surprises me is how all the highly paid advisers with whom I have spoken about mREIT investments have, for the most part, known nothing about them. Absolutely nothing. Some of these advisers handle accounts of a million dollars or more. Try approaching them with anything less and they walk.

An investor with a million dollar portfolio would be up more than $111,000 since January 1, 2014. If these we-have-our-finger-on-the-pulse-of-the-financial-world experts had put their clients into my barbell portfolio, they would be heroes today. Heck, they could rebalance for safety and lock in the accolades.

Of course, I'm not all that good at telling the future either. The difference is that I don't hold seminars telling folk what will happen in the financial world in the coming months. Remember, I'm the fellow who bought Labrador Iron Mines (LIM) and now has pennies left from his original investment. I fully expects even those pennies to evaporate unless there is a miracle. No, I cannot tell the future.

I am also the fellow who bought B2 Gold Corp and has watched it climb. My BTO gains are erasing some of my losses. I put a big chunk of my wife's tax free savings plan funds into Dundee REIT (D.UN). Her profits have climbed into the four digits in just a few weeks. Very nice. (The experts told me to stay away from REITs.)

Do you have an adviser? If you do, you should be up at least 2.08 percent for the year. Why do I say that? Well, I track a faux portfolio that I call the Lazy Dude porfolio. It contains: XBB, XRE, FIE, XDV, XMD and a big wollop of cash sitting in TDB8150. The Lazy Dude is up 2.08 percent.

Some day I may structure my own portfolio along the lines of a Lazy Dude portfolio. The Lazy Dude would never get caught up in the excitement of buying Labrador Iron Mines. If you want a goofy investment, why hang the badge on REM when the market offers the likes of LIM?

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