The World Basket: Portfolio Evaluation Part I

Feb 7, 2007 by

As I would like to see this blog be more interactive, I am once again soliciting your input. What do you think of the following portfolio? Which of the stocks would you sell first, when would you sell them, and why?

Imagine that the portfolio in question contains the following equities, each weighted in an equal proportion. (There are the same number of dollars invested in each.)

  • DVY (Dogs of the Dow – High Dividend U.S. Equities)
  • EPP (Asia ex-Japan)
  • EWY (Korea)
  • EWT (Taiwan)
  • FEZ (Europe)
  • FXI (China)
  • INP (India)
  • IYT (U.S. Transportation)
  • OIL (Crude Oil)

Due to the international nature of this portfolio, I have decided to call it The World Basket.

On Monday, I will comment on your input.

5 Comments

  1. Personally, I would sell the OIL stock as soon as possible and reinvest the funds in alternative fuel sources. Although oil prices are through the roof right now, the American economy cannot continue to support the gasoline industry considering the current trend of inflation. The federal government is encouraging the development of alternative fuel sources and has committed federal funding to aid these efforts. Currently, Blue Fire (BFRE) is making progress towards producing ehtanol from waste products rather than agricultural products, which will eventually make ethanol a cost-effective and readily available fuel source.

    I would sell the oil stock and invest in BFRE.

  2. jeffersonian

    They all seem pretty conservative adam…which i guess would fit with the broadminded international theme. Conservative investors..do like diversification if it seems relatively safe.

  3. Shak

    Good selection choice on the Asian ETFs. OIL is a terrible choice.
    Another point I want to make about investing is India and China: Two excellent international markets which have a lot of potential. The future for the US looks pretty bleak.

  4. Diann

    I’d sell the US Transportation stock. With fluctuating fuel costs and potential homeland security concerns, it seems the least attractive. Although, as Jeffersonian says, this portfolio seems pretty conservative overall.

  5. Marie

    Offhand, I would say the transportation stock is the most volatile and would need to go if you’re trying to maximize over the long haul, which is the kind of investor I am.

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