With the world stock markets in much turmoil these days, it won’t be surprising that the equities-heavy Sleepy Mini Portfolio lost 5.6 percent over the past quarter (see previous update). The Sleepy Mini Portfolio was started in August 2007 with an initial investment of $1,000 and like clockwork, $1,000 is being added to the portfolio every quarter since then. A total of $19,000 has been invested in the portfolio so far and as of June 4, 2012, here’s how it looks:
TDB909 – Canadian Bonds – $4,320 (21.7%)
TDB900 – Canadian Equities – $3,842 (19.3%)
TDB902 – US Equities – $6,119 (30.7%)
TDB911 – International Equities – $5,652 (28.4%)
Total – $19,934
Total Invested – $19,000
Since, the entire idea behind the Sleepy Mini Portfolio is to follow a mechanical investment strategy of committing savings to the portfolio regularly, we will add another $1,000 to the portfolio and rebalance it to the original target allocation — 20% bonds, 20% Canadian stocks, 30% US stocks and 30% international stocks — using this rebalancing spreadsheet. Here are the results:
TDB909 – TD Canadian Bond Index (e-Series) – Sell units for $133.53.
TDB900 – TD Canadian Index (e-Series) – Buy units for $345.17.
TDB902 – TD US Index (e-Series) – Buy units for $160.87.
TDB911 – TD International Index (e-Series) – Buy units for $627.49.
The list of transactions provides a clue to which markets are hardest hit. Most of the new addition will go to buy International stocks, which have been hit hard by the debt crisis in Europe. The sell transaction reflects the role that bonds have played in providing ballast to the portfolio.