An individual investor, and diligent saver, active in the markets for 30+ years. An unexpected early retirement has forced a change in portfolio strategy from a sustained growth bias to a sustained income approach. This is an ongoing process primarily focused on upgrading the credit quality and yield of the portfolio's holdings. The goal is to generate a 4% yield on invested funds while incorporating appropriate risk management techniques to preserve capital. Specific consideration is given to: •Position Sizing •Credit Quality •Sector Diversification •Income Diversification •Stock Selection Criteria The portfolio is anchored (15 - 20%) by preferred stocks and exchange traded notes which serve as a proxy for fixed income. These issues have higher dividend yields / coupon rates which allows greater latitude when selecting common stocks while still maintaining a 4% portfolio yield. Fixed income investments are intentionally minimized in favor of equities.
The USA is in trouble due to a broken federal political system, corruption that is less sinister and more systematic, lobbyist control of everything, and free markets used as an excuse to make money off people's misery. Despite this fact, I want to survive and (in parallel) I want to see humanity progress so I'll just do my little part and hopefully I have some success. If anyone here is truly seeking "alpha" status then you are guaranteed to fail as it only happens to those not looking for it. "The crow doesn't choose the crow life, the crow life chooses the crow" -- The Lord Of Crows. I cannot help my cynicism but I enjoy humanist moments plus I also really like a good laugh since, as you may know, humor is one of the most important aspects of life.
Evaluation of the dominant assumptions and an understanding of the dynamics of the economic engine is the basis of an approach to asset allocation that provides for both a rational determination of value and an understanding of sentiment in the form of price as a measure of the irrational nature of the operational environment, an approach that is intended at once to avoid unnecessary risk while at the same time enable gradual rebalance of assets as a means to increase net worth via optimization of appreciation and long term yields. Let's call that buy low and fly high just for fun!