Monday, January 4, 2016

A mock battle of recommended portfolios.

My best performer was a portfolio of stocks.
The stock market wilted today. Globally it was a bit of a blood bath but Canada was spared the worst. I was down some but nothing to lose any sleep over.

As I mentioned, I've set up ten portfolios, some mirroring portfolios recommended by well respected experts. I may be down but I wasn't at the back of the pack.

I'll consider revealing the make-up of my ten imaginary retirement portfolios when a few month have passed. Maybe a pattern will emerge. Maybe some portfolios will be consistent winners and others consistent losers. We'll see.

The blue bar represents the starting value of each portfolio. All but one left the starting gate almost at the same point. The small differences are due to the number and type of investment holdings. The TD e-funds carry no fees while the ETFs are like stocks. Each one comes with a trading fee of almost ten dollars. Luckily, these portfolios do not require a large number of ETFs.

One blue bar is noticeably shorter than the rest. This portfolio is composed of a dozen stocks. No ETFs or mutual funds here. It cost the most to build and yet at the end of the day the pure stock play was the best performer by far. (The red bar represents the value of the portfolio at the end of the trading day.)

Interesting.

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