Dollar still strengthening. IFO’s $50 Swatch watch, bought one year and a week ago, is now worth ‘only’ $56.03 today as the Euro is falling due to renewed fears about Greece defaulting on its debt.
Now, on to Wall Street. This is a good lesson for new investors. Having a model portfolio will give you a good idea about how much “risk” (read losses) you can stand. Today, our portfolio is again in the red to the tune of a total of: $263.20 total since we began this experiment, that’s almost 5% in just a few weeks.
Recall that we told Yahoo! we had “bought” 10 shares each of five different companies. Just for fun, IFO put the DOW index in as a comparison. Today, your portfolio (-0.72%) did better than the DOW (-0.79%), the NASDAQ (-1.21%) and the S&P 500 Index (-0.81%). So, people who have nice “safe” index funds can see where they would be.
IFO has been singularly unsuccessful in convincing any of her friends that investing by yourself is more rewarding and interesting and yes, even safe, than letting experts do it and charging you for the privilege. That is why she is running this model portfolio experiment. She could be wrong, you know. It will take at least a year, actually more than that to get good history. Starting the portfolio at what may turn out to be a top is an acid test. We may try to do some “trading” at some point, but we’re happy with the selections at this time.
Here are the numbers for this week: