When I last posted an update on the Sleepy Mini Portfolio, a simple, passive portfolio built out of low-cost, index mutual funds, I noted that investing feels like getting a hand stuck in a meat grinder. Well, not anymore. Less than 90 days later, stocks have rocketed upwards and the Sleepy Mini Portfolio now shows a more modest loss of 10%. Here’s how the portfolio looked as of May 29, 2009:
TDB909 – Canadian Bonds – $1,115.84 (17.8%)
TDB900 – Canadian Equities – $1,428.62 (22.7%)
TDB902 – US Equities – $1,790.70 (28.5%)
TDB911 – International Equities – $1,947.55 (31.0%)
Total – $6,282.72
Total Invested – $7,000
It would have been nice if stock prices had stayed low and allowed us to put more cash to work at cheaper prices. But, since the gyrations of the markets are unpredictable, the best that those of us who can’t time the markets can do is staying the course. In that spirit, it is time to put another $1,000 into the Sleepy Mini Portfolio and rebalance it back to the target asset allocation — 20% bonds, 20% Canadian stocks, 30% U.S. stocks and 30% International stocks.
We’ll use the nifty rebalancing spreadsheet to figure out how much of each holding should be purchased to bring the portfolio to target. Unfortunately, we run into a problem as the spreadsheet suggests buying just $27.92 of TDB900 but the minimum purchase for TD e-Series Mutual Funds is $100. So, we’ll simply use the portion that would have gone to purchase Canadian stocks to buy Canadian bonds instead.
TDB909 – TD Canadian Bond Index (e-Series) – Buy units for $368.62.
TDB902 – TD US Index (e-Series) – Buy units for $394.11.
TDB911 – TD International Index (e-Series) – Buy units for $237.26.
Investing so simple, it lets you have a life.