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Happy New Year 2007 !

I have been wanting to write blog for some time but life got busy with kids, MBA, work and Hawaii vacation. Finally taking the opportunity of new year 2007, I decided to write up my thoughts.
Reader beware - it's just free-flow of my thoughts spanning from my recent reading, movies and some investment ideas.

First of all, Happy new year to all folks who happen to come across this post !

Last week saw quite a few movies like "The Night At Musuem", "The Good Shephard" in theatres and saw "The Inconvinent Thruth: Global Warming" and "World Trade Center" on DVD. I liked all 4 movies - they were covering completely different topics but I happen to like all of them. I liked acting of Matt Daemon in Shephard, family friendly comedy of Museum and the presentation of global warming problem by Al Gore in Inconvenient Truth. This really opened my eyes and I am glad I saw it with my son Yash. Not only do we need to educate our generation and act on it but also educate next generation if we want to sa ve Planet Earth for all of human kind for years to come. For more details, check out
I definately recommend all 4 movies.

Did not get chance to read up too many books. Have been reading " The Preseident's Men" covering Nixon's watergate investigations by Washington Post journalists.

How did my stock picks did in 2006 - not very good. When S&P returned 13.6% for 2006, my picks combined were just break-even. Hope to do better this year. After seeing the performance of my recommendation vs my actual investments in mutual funds, I am strong beleiver in picking right mutual funds and let it ride the market. After I discussed few ideas with one of my friend Milind Kulkarni, here are my recommendations on target distribution for 2007.

Target Distribution Target % Recommendations Comments
Stocks



ESPP 15%
Your company stock Company stock
Individual Stocks 5%
YHOO, F, AAPL, PFE Yahoo, Ford and Apple and Pfizer
Domestic Mutual Funds 30%


Large cap
10% VFINX S&P Index
Sector
10% VGSIX, FSESX or FSHCX Real Estate, Healthcare or oil service
Small-cap
10% VSTCX Vanguard strategic equity
International Mutual Funds 40%


Global
20% VGTSX and VDMIX Total International and developed market
Emerging
20% VEIEX or UUPIX, MCHFX or TABRX Emerging fund and BRIC or china fund
Bonds 5%
VWEHX Corp bond fund
Short-term CD + Cash 5%
Cash is king:-)
Total 100%




As seen from above distribution, nearly 85% distribution is in MF. I beleive this distribution would beat S&P by about 2-3% next year.

Bye for now and enjoy 2007!

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