Saturday, December 16, 2006

2006 Asset Allocation

At the beginning of 2006 my investment assets were 58% in stock, 38% in real estate and 4% in cash. At that time I had debt equal to 21% of assets.

During 2006 I sold stock and real estate, and used the proceeds to reduce debt, buy treasury bonds and increase cash.

Today my asset allocation is 42% stock, 32% real estate, and 26% bonds and cash. My debt is now down to 11% of assets.


At December 16, 2006 4:01 PM, Anonymous Patrick said...

1.) What is your equities asset allocation?

2.) How do your RE holdings breakdown as far as personal residence (if that is even included), REIT's, and physical property.


At December 18, 2006 12:22 AM, Blogger zephyr said...

My comments relate to investment assets only - my personal residence is not included. I do own rental properties (houses, duplexes and apartments), but not REITs.

In March of 2003 I bought into various industries on a market cycle timing strategy. It was a very good run. During 2006 I decided it was time to get out, so I sold almost all of these stocks, which included commodities (metals), retail, consumer products, healthcare products, and other manufacturing. What now remains is almost entirely financial services, and is dominated by my employer stock (which is politically difficult to sell).

At February 04, 2007 1:14 AM, Anonymous Anonymous said...

Zephyr - I enjoy your commments on other blogs, but why don't you post more often? It seems like we may be heading for tumultuous times and your insight and experience would be very helpful to us novices.


At February 04, 2007 3:36 PM, Blogger zephyr said...

FredW, I frequently read the blogs to gather information and to take a temperature of public perception – getting views that are not generally present in my own environment. Calculated Risk is my favorite for this.

Typically, I am not motivated to post comments unless I see statements that are blatantly contrary to economic theory or are ignorant of contradicting historical context. Even then, I usually just read it and move on. However, sometimes I do post my outlook or view when I have more time.

At February 12, 2007 9:41 AM, Anonymous SenX said...

Post more on Mish's site in the comments. Your perspective will be appreciated and it will serve a twofold purpose for you. You will generate more traffic to your blog and you will feel good inside knowing you are helping honest seekers.


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