Core Portfolio (9 Dec 16)

A long-term investment that forms the foundation of an investor’s portfolio.  A core portfolio strategy is to primarily own an investment that tracks the overall market.  A solid core holding gives an investor the flexibility to take a chance with riskier investments in other areas of the portfolio.

Calendar Year	Dow 30 (UDOW)	Nasdaq 100 (TQQQ)	S&P 500 (UPRO)	Russell 2000 (URTY)
2016	47.2%	13.4%	33.8%	70.5%
2015	-8.6%	17.2%	-5.2%	-21.0%
2014	26.0%	57.1%	38.0%	5.9%
2013	107.1%	139.7%	118.5%	147.9%
2012	26.4%	52.3%	46.8%	44.6%
2011	9.1%	-8.0%	-11.9%	-37.6%
2010	51.4%	78.1%	36.3%	90.1%
Avg Ret.	39.6%	50.0%	36.6%	42.9%

A properly constructed core portfolio of leveraged ETFs will tend to outperform the benchmarks.  A core portfolio strategy also results in a portfolio that is easy to monitor and rebalance because it only contains a few investments.

Short-Term Trend (9 Dec 16)

When the stock trades above the 20-SMA, it is considered to be in a short-term uptrend.  When it trades below the 20-SMA, the short-term trend is considered down.

Benchmark	Symbol	Price	20-SMA	Market Trend
S&P 500	SPY	226.51	220.48	Uptrend
Dow 30	DIA	197.69	191.15	Uptrend
Russell 2000	IWM	138.31	132.35	Uptrend
Nasdaq 100	QQQ	119.50	117.47	Uptrend

 
If the short-term trend is up, use bullish leveraged ETFs.  If the short-term trend is down, use inverse leveraged ETFs.

Leveraged ETFs (9 Dec 16): SOXL $57.32

Buy (44) shares SOXL @ $57.32
Target Price (10%): $63.00

Leveraged ETFs (9 Dec 16): URTY $126.34

Buy (20) shares URTY @ $126.34
Target Price (10%): $139.00

Leveraged ETFs (9 Dec 16): RUSL $95.24

Buy (26) shares RUSL @ $95.24
Target Price (10%): $104.80

Leveraged ETFs (9 Dec 16): TNA $107.47

Buy (23) shares TNA @ $107.47
Target Price (10%): $118.30

Leveraged ETFs (9 Dec 16): FAS $42.42

Buy (59) shares FAS @ $42.42
Target Price (10%): $46.70

Leveraged ETFs (9 Dec 16): GUSH $118.67

Buy (21) shares GUSH @ $118.67
Target Price (10%): $130.60

Total Return YTD % (2 Dec 16)

The Total Return Historical Data shows how each index has performed on a yearly basis.  Over the long-term, the stock market has proven to be a very good investment, however from year to year the returns can be very volatile.

Calendar Year	S&P 500 (UPRO)	Russell 2000 (URTY)	Nasdaq 100 (TQQQ)	Wilsh 5000 (VTI)
2016	22.2%	44.8%	3.0%	10.2%
2015	-5.2%	-21.0%	17.2%	0.4%
2014	38.0%	5.9%	57.1%	12.5%
2013	118.5%	147.9%	139.7%	33.5%
2012	46.8%	44.6%	52.3%	16.5%
Avg Ret.	44.1%	44.4%	53.9%	14.6%

Monitor Market Progress:   You must monitor general market progress to make sure you are on track to reach your goal.  If you have adopted the 12% growth goal, you can break it down into a monthly goal.  As long as the general market is on track to reach your goal, 1% a month, there should be dozens of Leveraged ETFs that are also on track.

Short-Term Trend (2 Dec 16)

When the stock trades above the 20-SMA, it is considered to be in a short-term uptrend.  When it trades below the 20-SMA, the short-term trend is considered down.

Benchmark	Symbol	Price	20-SMA	Market Trend
S&P 500	SPY	219.68	217.99	Uptrend
Russell 2000	IWM	130.90	128.37	Uptrend
Nasdaq 100	QQQ	115.70	117.00	Downtrend
Wilshire 5000	VTI	113.31	112.32	Uptrend

If the short-term trend is up, use bullish leveraged ETFs.  If the short-term trend is down, use inverse leveraged ETFs.

Leveraged ETFs (2 Dec 16): SOXL $49.31

Buy (50) shares SOXL @ $49.31
Target Price (10%): $54.30

Leveraged ETFs (2 Dec 16): TNA $91.75

Buy (27) shares TNA @ $91.75
Target Price (10%): $101.00

Leveraged ETFs (2 Dec 16): URTY $107.35

Buy (23) shares URTY @ $107.35
Target Price (10%): $118.10

Leveraged ETFs (2 Dec 16): FAS $37.17

Buy (67) shares FAS @ $37.17
Target Price (10%): $40.90

Leveraged ETFs (2 Dec 16): RUSL $80.19

Buy (31) shares RUSL @ $80.19
Target Price (10%): $88.20

Leveraged ETFs (2 Dec 16): BRZU $26.10

Buy (95) shares BRZU @ $26.10
Target Price (10%): $28.80

Total Return YTD % (18 Nov 16)

The Total Return Historical Data shows how each index has performed on a yearly basis.  Over the long-term, the stock market has proven to be a very good investment, however from year to year the returns can be very volatile.

Calendar Year	S&P 500 (UPRO)	Russell 2000 (URTY)	Nasdaq 100 (TQQQ)	Wilsh 5000 (VTI)
2016	20.4%	45.5%	7.8%	9.6%
2015	-5.2%	-21.0%	17.2%	0.4%
2014	38.0%	5.9%	57.1%	12.5%
2013	118.5%	147.9%	139.7%	33.5%
2012	46.8%	44.6%	52.3%	16.5%
Avg Ret.	43.7%	44.6%	54.8%	14.5%

Monitor Market Progress:   You must monitor general market progress to make sure you are on track to reach your goal.  If you have adopted the 12% growth goal, you can break it down into a monthly goal.  As long as the general market is on track to reach your goal, 1% a month, there should be dozens of Leveraged ETFs that are also on track.