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December 30, 2011 Portfolio Composition

Below is my year-end portfolio composition. After wholesale changes in the last two weeks to minimize current and future tax liabilities, the portfolio no longer has high concentrations of high and ultra-high yield stocks and ETFs with little to no growth.

The portfolio now has a greater slant towards value and growth, as I see 2012 as a potential break-out year. The current yield sits at 4.80%, however several planned moves in early January will lift the portfolio yield to 5.70%. I expect dividend growth of 6.0% in 2012 as well as capital appreciation from this group in the neighborhood of 8.0% - 12.0%, for a total projected portfolio return of 14% - 18%. Factoring in expected trading gains, I expect a total return in 2012 of 20%- 24% before taxes.

My target allocations are as follows:

High Yield Bonds- 22%
Energy- 12%
Consumer- 12%
Tech- 10%
Trades- 10%
Industrial- 10%
Preferred Stocks- 8%
Telecom- 7%
REITs- 6%
Financials- 6%
Pharma- 4%
Utilities- 4%
Services- 4%
Mortgage REITs- 4%
Basic Materials- 4%
Medical Technology- 4%
Business Development Companies- 3%
Cash- (30%)



Weight Yield



HYG 16.75% 7.18%
AAPL 4.60% 0.00%
STJ 4.15% 2.43%
TGP 3.77% 7.59%
T 3.44% 5.81%
OHI 3.34% 8.15%
JNK 3.26% 7.65%
CLI 3.04% 6.72%
MSFT 2.96% 3.06%
PEP 2.83% 3.09%
WAG 2.82% 2.72%
NYB 2.81% 8.08%
INTC 2.77% 3.44%
PFF 2.74% 6.19%
EMR 2.67% 3.40%
ITW 2.67% 3.06%
ORCL 2.64% 0.93%
CAT 2.59% 2.02%
GE 2.55% 3.78%
HAS 2.54% 3.75%
FE 2.53% 4.93%
CMI 2.52% 1.80%
CSX 2.52% 2.27%
NTAP 2.50% 0.00%
QCOM 2.49% 1.57%
CVX 2.43% 3.02%
IFF 2.39% 2.36%
DECK 2.18% 0.00%
BBEP 2.16% 9.13%
FTR 1.97% 14.07%
JPM 1.88% 3.02%
BMC 1.87% 0.00%
ZMH 1.37% 1.34%
WM 1.30% 4.34%
BRCM 1.17% 1.22%
CSCO 1.03% 1.32%
SYMC 1.01% 0.00%
MSFT17.5Calls 0.48% 0.00%
CIM 0.34% 20.55%
MSLP 0.13% 0.00%
Cash -9.25% 0.00%




100.00% 4.80%