Your thoughts on my portfolio to date:
I had a down day while traveling, thought i would check the portfolio. I originally had close to 50% of my money in cash (i withdrew before i went away). I bought crescent point!!! i also averaged down a bit more with FTP. I am maintaining 25% cash for now just in case i see something else taht dips.
I would like to add nike for some us exposure. FTP and PSD are my two 'speculatives', while i am also watching pbn!
mostly all of this is between TFSA and RRSP. I am 22.
what DO YOU think....too speculative? total investments are somewhere near 40,000$ i believe.
Some might say it's undiversified (which it is) but honestly, if at 22 you have $40,000 to invest, you're on the right track already. At the moment I have about $35k in 8 securities, with the only difference being I started with 4 ETFs representing Canadian large cap, US large cap, Emerging markets, and Global Small cap.
Originally Posted by beans
If you wanted to add some diversification I'd consider moving the 25% cash into some broader market ETFs to mitigate the swings some of your speculative plays might experience.
Other than that, from another 22 year old, congrats on the portfolio so far.
If you are more than 5% in one company, or more than 20% in one sector (you have 40% banks), you are taking risks that could be mitigated by holding low MER ETFs instead.
I like your base with TD,RY and I would have itchy finger with FTP, CPG,and PSD. Any reasonable profit I would be booking it.
This market is getting scary try to not get caught all in.
The 5% guideline in one company I would agree with for a properly diversified portfolio, however I would argue that 40% allocation in banks for a Canadian portfolio is by no means too overweight. If you buy XIU or XIC as representative ETFs of the canadian market, you will end up with 31% and 29% exposure to financials respectively. Going by past performance of Canadian banks, I would aim to be overweight in Canadian financials and would have no issue with a 40% allocation.
Originally Posted by Soils4Peace
The problem (if you want to call it a problem) with Canadian financial markets is that 75-80% of market cap is in financials, energy and basic materials. By nature this is overweight in all three of these sectors.