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The Perfect ETF Portfolio

Adam Hewison - MarketClub

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Hello traders and MarketClub members everywhere! Today, I'm going to be looking at the Perfect ETF Portfolio. This is a very simple portfolio to follow and track and we provide you with all the signals and turning points before they occur.

The Perfect ETF Portfolio was designed to track and take advantage of the major financial markets we have identified as being important in the long run, stocks, gold, the Dollar and crude oil. These four ETF instruments were chosen to give your 401(k) program or retirement program the broadest possible protection, no matter what happens in the world. After all, it is your retirement money and your nest egg, so this is not money you should be gambling with.

To represent stocks, I chose the SPDR S&P 500 ETF (PACF:SPY).

To represent the purchasing power of the Dollar, I picked the CurrencyShares Euro ETF (PACF:FXE).

To mimic the action in crude oil, I went with the The United States Oil ETF (PACF:USO).

Lastly, I chose the SPDR Gold Shares (PACF:GLD) to mirror the price of gold..

With the 401(k), you cannot short the market, therefore you are frequently in the markets when they are going up and out of various markets when they are going down, as is the case now in gold, crude oil and the Euro. That money that is not being used in the market is of course working for you in a money market fund whose returns we do not reflect in our trading results.

Now remember, this is your retirement account and you are not swinging for the fences to make tremendous returns, you're simply looking to get a good return on the capital. This portfolio is extremely conservative in nature and while it has shown some excellent returns historically, those returns may or may not be replicated in the future.

We started tracking this portfolio in 2008 and for that year we saw a 12% return on invested capital. You may remember that 2008 was a disastrous year for the stock market that many investors are just now getting back to square one some six years later. In 2009, we almost had a double-digit return, we just missed that target with a gain of 9.8%. 2010 produced a gain of 7.2% and in 2011 we bounced back in double digit returns with an 11% gain. In 2012, we witnessed a very small 1.1% loss for the year, which was made up the following year in 2013 with a gain of 2.1%. The goal of the Perfect ETF Portfolio is to protect capital (your nest egg) at all costs. Over the last six years, this portfolio has returned a very respectable 6.8% on capital not including interest on unused money in your portfolio.

In today's video, I will be looking at the portfolio and showing you exactly how you can implement these very same tactics and strategies in your retirement portfolio.

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