Hi Dale. Thanks for your response. I took a look at your thread and like what I see. Generally a different universe of stocks - perhaps I could benefit from that exposure. Also noticed TheKelster posting. Another good sign, as he's a good guy.
fwiw, my responses to your comments:
<How much do you want your money to make and over what timeframe? Seems to me you should start from that side of the equation then
pick the risk-level in individual stocks accordingly.>
Makes sense. However, with my 100% new economy portfolio up 25x (yes, 25 times) from 5/98 to 3/2000 and a 7 figure loss since then, I am now most concerned with capital preservation. After all, further losses would impact my lifestyle to a greater extent than further gains.
<But I'm like Bill - heavily into equities, no kids or debt, etc. I average 75-80% of my portfolio in stock related to the New Economy plays.>
My biggest asset allocation concern has been equities as what % of total assets. Excluding real estate, I've decided to invest enough in AAA tax free munis and Ginnie Mae's to cover all living expenses, and invest the rest in equities. Those equity $ will be largely invested for LT capital gains in solid new economy infrastructure stocks such as qcom, jdsu, bvsn, vign, csco. The remainder I will use to take advantage of current market conditions for ST gains. I will use my large 2000 loss carryforward to offset these LT and ST gains, probably for years to come.
This strategy should protect me from future lifestyle-compromising losses, but still allow for enough growth to cover inflation and hopefully grow my total net worth over time. This major asset reallocation reflects my new-found desire to preserve capital. It also reflects my perceptions of the altered post-April 2000 investment environment going forward.
Thanks again for your input. Regards, Rob |
