Virtual Portfolio Update

Hello everyone! Today, I've decided to finally take some profit on the virtual portfolio. Since its inception 3 months ago, the portfolio has gained 25.7%! Pretty incredible gains I'd say. In the same period, the S&P 500 index has gained 15.4%.

I'm just a little weary that market has come too far too soon and is due for a healthy pullback in the near term. After this pullback, I will reconsider getting back in. 

I didn't liquidate everything, however. I'm still holding onto Apple, Stone Energy, and the MOO ETF Market Vectors Agribusiness. I like the fundamentals/story of all three companies and I also like the charts for SGY and MOO. Apple's chart is pretty ludicrous; it's gone parabolic! Regardless, I think Apple's stock has room to run from here. Morgan Stanley just recently put a price target of $960 on Apple. That implies a 40% upside from current levels.

After selling many of my positions, the virtual portfolio is cash heavy and equity light. I have 87,000 in cash and 39,000 in equities. Pretty awesome having just started with 100,000 3 months ago.

Although the virtual portfolio wasn't as safe as a mutual fund, it still was a relatively safe portfolio that I would be comfortable having if I were in my 40s-50s. It was highly diversified into solid companies/ETFs poised for growth. My whole point here is to say that it's possible to beat the market without making outrageously risky bets in the stock market. As Jim Cramer says, "stocks are still the best source of supplemental income".

Looking forward, I may transition some of the cash into dividend paying stocks such as Verizon, American Express, and/or Xcel energy, as well as others. But we will have to see how the market pans out from here.

Cheers,
EZ