Friday the 13th October 2006

Posted by Kirk Lindstrom Oct 13, 2006

I keep track of several core portfolios for FREE articles as well as my newsletter. I am working on an update for one FREE ARTICLE now and I'll share some preliminary results below.

as of 9/30/06

• $5,303 at the start of 2000 in VTSMX is worth $5,641 up 6.4%
• $4,105 at the start of 2000, 80% in VTSMX and 20% in VBMFX is worth $5,084 up 16.2%
• $3,256 at the start of 2000, 50% in VTSMX and 50% in VBMFX is worth $4,216 up 30.0%

2006 thru Q3 (10/12/06)

• $5,303 at the start of 2000, 100% in VTSMX, is worth $5,773 up 8.9%

(Does this mean we are in a new secular Bull market!!!)

• $4,105 at the start of 2000, 80% in VTSMX and 20% in VBMFX, is worth $5,176 up 18.3%
• $3,256 at the start of 2000, 50% in VTSMX and 50% in VBMFX, is worth $4,258 up 31.3%

Who'd have thought an 80:20 VTSMX:VBMFX portfolio, what MPT recommends is the max equity exposure for proper compensation for extra risk, would be up 18% since 1/1/2000?

My Newsletter Explore Portfolio Value by Key Dates (Email me for a graph of more data)

• 09/30/1998 - $100,000
• 01/01/1999 - $156,820
• 01/01/2000 - $340,329 My best year, up 117%!
• 01/01/2003 - $240,421 No pain, no gain. I don't market time so it goes down in bear markets.
• 08/15/2004 - $344,099
• 12/31/2005 - $460,719
• 09/30/2006 - $494,343 up 45% since January 1, 2000! Nearly 5x your money since inception!
• 10/12/2006 - $511,996 up 11.1% YTD!

Since 12/31/99 My Newsletter Explore Portfolio 's total return is +50.44%

Notes:

1. VTSMX = Vanguard's Total Stock Market Index Fund
2. VBMFX = Vanguard's Total Bond Market Index Fund
3. Returns are with annual rebalancing to target allocation on Jan 1

Kirk Lindstrom:

DISCLAIMER: Answers & my words are general in nature, are not meant as specific investment advice, and do not necessarily represent the opinion of anyone but Kirk. Individuals should consult with their own advisors for specific investment advice.