I’m considering putting some of the cash in my Roth (currently earning 2.4% in a money market), and I need your help. I have a 20-30 year time horizon. Any assistance you could provide would be greatly appreciated.
My current allocation looks like this:
ADRE 10%
ATSI 5%
COV 3%
EWZ 6%
HHJ 2%
ILF 13%
RMG 2%
SPY 17%
CGMFX 11%
OAKLX 4%
Cash 26%
I have sell orders in ATSI and HHJ. In retrospect, I should have never bought them. That will put an additional 7% in cash soon.
I will also not hold COV or RMG long-term. I do believe their prospects this year are pretty good though.
I have pretty significant international exposure with ILF (Latin America), EWZ (Brazil), and ADRE (Emerging Mkts.) making up 29% of my portfolio leaving 45% of it more domestically focused. But, where do I go next?
So my new investment ideas in no particular order are:
Berkshire Hathaway – I could put some in Berkshire and let the oracle of Omaha work for me. That’s a huge chunk fo change though at $4500 per class B share. Isn’t it time for C shares at 45 bucks each?
CGMFX – Yeah, I’m already in it, but it’s done well for years, and it’s down 8% YTD making this a nice buying opportunity. Maybe just a little more…
BRSIX – This is Bridgeway’s Ultra Small company fund. I’m potentially under-exposed in this area. Minimum entry here is $2000. It’s got a good expense ratio and like CGMFX is down about 8% for the year.
FXI – This would increase my exposure to China and the rest of Asia Pac. I’m a little hesitant to go here because these areas could easily start to slow down. Could just put in a little and see.
GEX – This is an alt. energy global ETF. I will probably drop in a little here no matter what. It won’t be a long-term hold, but it’s hot now and could boost my overall return. Others I considered were PBW and QCLN
What about Individual Stocks?
COMV – Interesting alt. energy play sitting near its 52 week low. I wouldn’t touch it until after the 3/24 earnings call. Probably not after either but its on my watch list. I could get some exposure through PBW, but PBW is highly correlated with GEX and has underperformed it at 1 year and 6 month examinations.
ENOC – Another alt. energy play. Better for me to quote than try to explain, “The company’s demand response capacity provides an alternative to build conventional supply-side resources, such as natural gas-fired peaking power plants, to meet infrequent periods of peak demand. It also offers meter data gathering and storage services for advanced meters; energy analytics and control services; energy procurement service; and emission tracking and trading support” This could be interesting but feels to risky for my retirement portfolio.
JOE – Interesting company providing exposure to Residential Real Estate, Commercial Real Estate, Rural Land Sales, and Forestry. I’ll probably pass.
GOOG – What is the right price to enter Google? I still don’t know.
PFE – Pfizer. It’s yielding 5.8% as of this writing and sitting close to a 2 year low. The just met with the investment community today and basically said nothing meaningful again. They will have to make a move soon. Buy Biogen? Buy Bristol-Myers? Major cuts at the home office? Cut sales force again? There’s lots of choices. None are great, but most offer upside to $22 bucks.
So, the question is where do I go from here? Is now even the right time/when is this knife going to hit the floor? Am I overlooking commodities? Should I accept some European exposure beyond what I get the through large caps in the SPY?
I’d love to hear other’s thoughts. My lean is towards some in GEX, SPY, PFE and CGMFX.