Weighing in on Sector Weighting.

Our current portfolio sector weighting

When we started this experiment, the initial goal was to learn about finance through having a real stake it it. Perhaps true to our personalities, this meant going with a very conservative and reasoned approach to building a portfolio. To date, we haven't sold anything and acquiring new investments has come at a very slow pace. We have tried to hedge our bets a bit by investing globally and across an even spread of sectors. Dividends have played a small part in this strategy as well.

Everything has been focused on slow, steady growth and the portfolio has been humming along.

There was talk about investing in Taiwan. The original idea was that we wanted to invest somewhere in Asia, but the surrounding countries have their own issues, and it seems like something worth looking into. We are pretty low in Tech and Consumer Discretionary, so investing in an ETF like EWT would balance out those sectors a little more. This is good because more balance across sectors protects you against negative changes in the global economy or across specific sectors or funds (EWZ, I'm looking at you). The flip-side, of course, is that it mitigates any growth across specific sectors, but we're a bunch of scaredy cats, so we tend to worry about the bad.

We were looking at IXI, a global consumer staples ETF as well.

For next week, we will continue our research on Taiwan and other Asian options.

Profit!