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Our Safe, Aggressive Investment Portfolio

Last update on: Jun 18 2020
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Profitable trends are starting to develop in the markets. I can tell from the action in our Invest With The Winners Aggressive Portfolio.

Our Aggressive Portfolio uses my own rankings of over 300 mutual funds, representing most available investment strategies. I recommend buying the top two funds in the rankings that are at the top of page 11, if the funds meet my buy rules. The buy rules are in the new subscriber report How To Get The Most From Retirement Watch, which also is available on the web site. Sell a fund anytime it falls more than 5% from its recent high or drops out of the rankings on page 11.

The rankings assure we buy only funds that are using the most profitable investment strategies of the day. The sell rules preserve gains quickly when the markets shift.

The results show that the rankings and rules work. The model portfolio had a total return of over 354% from its inception in January 1995 to the bull market peak in March 2000. Following the peak, the portfolio lost only 2.64% in 2000, gained 3.68% in 2001, and gained over 39% in 2002. Its worst month was a loss of over 12% in June 2002. (Performance figures do not include any taxes or trading costs.)

There wasn’t much activity in 2000 and 2001, because the bear market had numerous short-lived rallies and the rankings filter out short-term changes. In 2002, there were only a few trades. During those years, the model portfolio spent a lot of time in money market funds waiting for new trends.

More recently, gold shares, bonds, and international bonds consistently topped the rankings and kept the portfolio invested. This is a big change from the days when growth and technology stocks topped the list.

The Aggressive Portfolio is not for everyone. You have to check the funds’ prices every day and be willing to make trades. You also will be invested in volatile assets from time to time that could lose value quickly, as with the gold stocks. The system works best if you invest through a mutual fund broker, though you will have to pay fees on almost all trades.

An aggressive strategy should be only 5% to 20% of a portfolio for most investors. You also have to follow the portfolio everyday. Selling the funds at the right time is key.

If this approach appeals to you for part of the portfolio, review the rules and follow the rankings on page 11.

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