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[RT] Safety First Portfolio



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Dear Earl,

Comments well taken. BERIX looks defensive, and in line with a 
reposition formula as noted.

I was thinking of buying T-Bills via my commodity broker taking short 
term maturities and rolling them over at maturity. I thought that 
worked well for me in the past. Am I missing something here?

I like your idea on SHY..definitely a saving...as are the other ones 
noted.

Thanks for the lead on the VIX and entering the Puts.

This conservatism is new for me...so I am likely to stage it pending 
further market action.

Sincerely,

John


------------------ Reply Separator --------------------
Originally From: "EarlA" <earl.a@xxxxxxxxxx>
Subject: Re: [RT] Safety First Portfolio
Date: 01/09/2003 06:50am


John, a couple of comments.

BERIX showed up on a recent Morningstar screen I did for steady 
performance
and low volatility.

If you are buying/selling Treasury notes and bonds through a broker 
which is
trading own inventory while buying/selling at the spread, you are 
going to
take a big hit. I have been through this with Fidelity and will never 
trade
treasuries through them again. Most short term treasury funds are far 
too
high on expenses. Here is alternative:

iShares Bond Effective 26July with 0.15% expense ratio
 iShares Lehman 1-3 Year Treasury Bond Fund (ticker: SHY)
 iShares Lehman 7-10 Year Treasury Bond Fund (ticker: IEF)
 iShares Lehman 20+ Year Treasury Bond Fund (ticker: TLT)

Buy the puts when VIX is in 20's .. lower the better.

Earl

----- Original Message -----
From: "John Cappello" <jvc689@xxxxxxx>
To: <Realtraders@xxxxxxxxxxxxxxx>
Cc: <MedianLine@xxxxxxxxxxxxxxx>
Sent: Wednesday, January 08, 2003 5:08 PM
Subject: [RT] Safety First Portfolio


>
> Right now I am reviwing a portfolio revamp aside from trading. Here
> is one that interests me:
>
> 1. 10% Prudent Safe Harbor Fund [PSAFX}
>
> 2. 10% American Century Intenational Bond Fund {BEGBX}
>
> 3. 50% T-Bills
>
> 4. 20% 3 to 5 year Notes
>
> 5. 10% Enerplus Resources {ERF}
>
> 6. 10% in gold stocks distributed equally [AU, ORODY, AEM, RGLD, 
NEM,
> CLG]
>
> Buy both of below in a quantity to be determined and subtracted from
> above.
>
> 7. S&P 500 Dec 2003 LEAPS 80 Puts
>
> 8. Dow Dec 2003 LEAPS 80 Puts
>
> Ideas gleaned from numerous sources which often coincided.
>
> Food for thought...in the event of disaster. On the otherhand I 
would
> like to fall somewhere in the middle.
>
> John
>
> To unsubscribe from this group, send an email to:
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>
>
>
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>
>


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