Dollar Based Model Portfolio

The goal of successful asset allocation is to make the ride as smooth as possible and yet obtain the highest level of return for a given amount of volatility.

This portfolio is composed of five different asset classes: equity, fixed income, funds, commodities and cash. These asset classes were chosen as the building blocks of the portfolios because of their relative lack of correlation with one another.

Prudent

	Cash
	Commodity
	Equity
	Fixed Income
	Fund

 

Performance

	Cash
	Commodity
	Equity
	Fixed Income
	Fund

 

Asset Allocation

Prudent
Equity	Buy stocks with above-average dividend yield and dividend growth.
Fixed Income	Short-Term Investment Grade Fixed Income tends to represent a defensive stance within the fixed income realm, with limited credit and interest rate exposure.
Cash	Cash tends to provide stability in periods of significant weakness in the financial markets.
Performance
Equity	We expect to see 1100 for the S&P 500 by year end, based on the support provided by a global synchronized economic recovery, as well as the strong improvement in credit markets over the past few months. Cyclicals are gaining steam, so we would look to add to Cyclicals during any pullback.
Fixed Income	Short-term investment grade bonds represent a defensive stance with minimal credit and interest rate exposure.
Commodities	Gold remains in downtrend in short term. Buying opportunities for further weakness in gold.