A Year End Look At eWorldvu's Model Portfolios

As we approach the end of 2010, lets take a look at how our investments have done in the last year. 

eWorldvu started the year with the construction of two $100,000 equity portfolios.  Our Growth Portfolio was designed for long term price appreciation. Meanwhile, the eWorldvu Retirement Portfolio was designed for current income as well as some long term price appreciation. 

The year to date performance of each model portfolio can be found here: eWorldvu Portfolio Return for 2010.

In the Growth Portfolio, the year to date return is more than 16%.   The performance easily beats the return this year of the Standard and Poor 500.  Any reader that followed our investment recommendations earlier in the year, received the following excellent stock returns:

Peabody Energy + 35%

Flour Corporation  +34%

Berkshire Hathaway +11%

Sprott Physical Gold Trust + 20%

ETF Silver Share +90%

Only Bank Of America, Pfizer and Microsoft were the laggards in the Growth Portfolio.  These three holdings remain very undervalued and our intention is to retain all three in 2011.  In summary, the $100,000 Growth Portfolio early in 2010 is now valued at $116,200.

Unfortunately, the performance of the eWorldvu Retirement Portfolio was not as exciting.  The Portfolio had a return of -3%.  The initial $100000 investment is now worth $96668.  The portfolio suffered from an investment in BP and the unfortunate Gulf oil spill hurt the Retirement Portfolios return.

In addition, Abbott Labs and Bank of America lost ground in the Retirement Portfolio in 2010 but we strongly believe that the current price of both stocks represents excellent long term value. In fact, in the case of Bank of America, in our view, the current depressed price of the equity represents a once in a lifetime opportunity to acquire America's largest bank at a bargain basement price. We believe that BAC will be a big long term winner for the portfolio in the next few years.  

So, what do we do in anticipation of the New Year?  Our intention is to make some changes to both Model Portfolios. Since interest rates are heading much higher with the economic recovery and the Fed printing money - equities and new alternative income investments will be selected while long term bonds and bond mutual funds will be avoided.  

Stay tuned in the next few days as we outline our thoughts for financial instruments suitable for investment in the New Year.  Happy Holidays and Happy New Year from eWorldvu.

http://www.eworldvu.com

Comments

[surkhab khan]

Informative news….thanks