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Investment Strategy

I developed the following strategies:

  1. NASDAQ 100

    This portfolio selects 5 stocks out of 100 stocks that are part of the NASDAQ 100 index. Stocks are selected based on market conditions. This portfolio gets stellar performance but with it comes high volatility. It considerably outperforms the NASDAQ 100 index (the benchmark for this portfolio) over long periods.

  2. Leveraged ETF

    This portfolio consists of 2 leveraged ETFs (Exchange Traded Funds). This portfolio also gets stellar performance and comes with high volatility. It considerably outperforms the S&P 500 index (the benchmark for this portfolio) over long periods.

  3. Active Vanguard

    This portfolio selects 2 funds from 14 Vanguard funds that do not contain bond holdings. The 2 funds are selected based on market conditions. It's much more conservative (less volatile) than the NASDAQ 100 or leveraged ETF portfolio but it still gets very decent gains and considerably outperforms the S&P 500 (the benchmark for this portfolio) over long periods.

  4. Vanguard Select

    This portfolio selects 2 funds from 5 Vanguard funds that do not contain bond holdings. The 2 funds are selected based on market conditions. It's much more conservative (less volatile) than the NASDAQ 100 or leveraged ETF portfolio but it still gets very decent gains and considerably outperforms the S&P 500 (the benchmark for this portfolio) over long periods.

  5. Simple Vanguard

    This portfolio switches between 2 funds available through Vanguard depending on market conditions. It's a bit simpler than the Active Vanguard portfolio but it still gets very decent gains and considerably outperforms the S&P 500 (the benchmark for this portfolio) over long periods.

  6. Lazy Vanguard

    This portfolio puts equal amounts in 4 funds available through Vanguard and rebalances once a year. You'll only have to trade (rebalance) oce a year but it still gets very decent gains and considerably outperforms the S&P 500 (the benchmark for this portfolio) over long periods.

  7. TSP

    This portfolio cswitches between 2 funds available through TSP (Thrift Savings Plan, a defined contribution plan for United States civil service employees). It's much more conservative (less volatile) than the NASDAQ 100 or leveraged ETF portfolio but it still gets very decent gains and considerably outperforms the S&P 500 (the benchmark for this portfolio) over long periods.

These strategies are very similar. The main difference is that the first one invests in individual stocks, the second one invests in ETFs and the others invest in mutual funds. Investing in individual stocks tends to be much more risky than investing in ETFs or mutual funds since ETFs and mutual funds hold many stocks/bonds. The risk of investing in individual stocks is substantially reduced by investing in 5 stocks. Investing in more than 5 stocks or more than 2 mutual funds reduces long term gains without much reduction in risk (volatility).