Saturday, March 10, 2007

Asset Allocation for March 2007

Periodically, I will be posting our portfolio's current asset allocation. Here is how we are investing our portfolio as of today:

This allocation does not include our emergency cash reserves, and does not include our 401(k) plans. However the allocation in our 401(k) plans is similar to that of the rest of our portfolio from an asset class perspective.

Note that our exposure to international markets is currently approximately 20%. My goal is to increase this exposure to about 25% within one year. This added exposure will come from the current cash allocation in the portfolio. See my previous post "Diversifying into International Markets" for a discussion of why I believe this is the right strategy for us.

Our exposure to the real estate market is about 7% of the portfolio. While this asset class has yielded impressive returns over the past 3 years, and I think it is due for a downturn, I will keep exposure at current levels since as a percent of the overall portfolio this asset class is properly weighted in my opinion.

The total return on this portfolio since March 2006, was 11.4%.

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