Rational Blog

Last Friday, I deployed 10% of my portfolio into the S&P 500 spider exchange traded fund. Today, I will be doing more buying. I'm encouraged by the reduced volatility that we have seen at the end of the week. In addition it would seem plausible that the market has already priced in a long and deep recession. I'm reducing my cash to about 30% with today's buying. Here is what I added to the portfolio today: Utility ETF (XLU), Semiconductor Fund (XSD), Preferred stock fund (PFF), Materials ETF (XLB), Oil Long ETF (DIG) and Global Infrastructure (IGF). I opened positions with $50,000 each. I also added $25,000 to the existing positions - IAT, IYK, ITB, IYT, IGM.

The model portfolio is down 1.5% at the moment. November has typically been a strong month. If so, I still have a chance to finish the year in positive territory. The election, no matter the winner, should be a good catalyst as it removes one big uncertainty.

Jamie Dlugosch
The Rational Investor

Comments: View Comments |  Friday October 31, 2008  |  Stocks: DIG, IGF, PFF, XLB, XLU, XSD,