Portfolio Strategy

Topics: Investment, Stock market, United States dollar Pages: 4 (781 words) Published: May 6, 2015
The portfolio I created used a moderately aggressive strategy that included investing in growth sectors, which included primarily technology with some being made in an emerging market fund. Also in an attempt to generate high returns, a speculative position on gold was added. In order to balance out risk and add different types of securities, high rated bonds were added to the portfolio.

My asset allocation in the technology sector was based on finding certain securities with growth potential, as well as purchasing a fund that had diversified holdings in the technology sector. A stock with high growth potential that I included in my portfolio was FTNT (Fortinet Inc.). Fortinet Inc. specializes in network security products and services. The company had a rough year in 2013with a 34% reduction in net income. However, strong revenue growth in the past three quarters suggest the company will make a comeback this year. The revenue growth could be aided by the recent news of major retailers’ computer networks being hacked. Fortinet’s price to book ratio of 6.84 is below the industry’s average of 10.35, suggesting it could be underpriced. TEAR (TearLab Corp) is a medical technology research lab that develops software and devices for testing for and treating dry eye disease with its patented Tearlab Osmolarity System. The price to share ratio for TearLab is slightly above average for that of the industry, indicating that it has slight premium and could be a sign of high expected revenues. In addition, the company has a higher than average current ratio indicating its ability to pay off short term debt.

The ETF PNQI (PowerShares NASDAQ Internet Portfolio) has 74% of its portfolio in Internet software and services, nearly 24% in Internet Retail, and the remaining 2% in Telecommunication. The fund has steadily gone up by 23% over the past five years, which is 8% higher than other ETF’s in the category. Other reasons for choosing this security were the...

Cited: Advani, Pashupati. "Finding Reason to Invest in India amid BRIC Letdown." CNBC. CNBC, 14 Feb. 2014. Web. 29 Sept. 2014.
Investing.com. "Gold Trades near 4-1/2 Year Low as Rising U.S. Dollar Weighs Read More: Http://www.nasdaq.com/article/gold-trades-near-4-12-year-low-as-rising-us-dollar-weighs-cm412345#ixzz3JyCNsehM." Nasdaq. Investing.com, 11 Nov. 2014. Web. 15 Nov. 2014.
Zacks. "India Promises Steep Growth: 2 Fund Picks." - September 24, 2014. Zacks, 24 Sept. 2014. Web. 02 Oct. 2014.
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