2/5 Portfolio Update

2012 has seen a great start to the equities market.  Fundamentally, the economy appears to be getting stronger, consumer sentiment seems to be positive, the European debt crisis can has been kicked down the road by the powers that be and most importantly, (apparently) jobs are being created here in the US of A.  

Technically, things are looking good as well.  The S and P is trading well above its 50 and 200 day moving averaged and as of 2/2 the IYY and IVV reversed back into a positive trend relative to the money market.  I have been on the sidelines now for a few months and missed out on a nice run up in the US markets and that is OK with me.  I like to invest when there is a real direction and flow with the momentum.   It appears as though there is now some positive direction.  Problem is, markets are now in overbought territory because things have come so far so fast.  

I'd be looking to be a buyer here but not all at once.  I'll be buying on down days only.  Let the market allow you to enter, don't force your way in.  I like widely traded total market ETF's here, Large Cap US dividend payers and maybe a little exposure to emerging markets.  For some extra sizzle, I like some of the residential real estate REITs with high dividend payouts.  I will also be keeping some exposure to gold and corporate bonds, but no cash. 

Since I am on a bit of a vacation, I'll update the portfolio later... when I actually make some purchases.  For now as a guideline I envision it looking like this:  70% Equity, 20% Corporate Bonds, 10% Gold (0% Cash... eventually, after strategically re-entering the markets).   The Equity break down will be something like 50% Large Cap US, 25% Emerging Markets, 25% REITS.  

Enjoy the nice investing conditions, but enter with care and patience.