Update: New World Order Collection Improves Substantially

Posted on June 20th, 2009 by admin in How to Invest

We defined a New World Order collection of securities in this previous post:

Securities for the Economy’s New World Order

The idea was to collect securities that have a focused exposure to some of the identifiable factors driving the economy in the New World of Obama. We applied our Portfolio Diversification X-Ray to study the diversification among these securites and to consider their historical ROIs and volatilities.

Figure 1 shows  the latest PDX.

Table 1

NWO Collection, 45 days Ending 19 JUN 09

NWO Collection, 45 days Ending 19 JUN 09

There are some useful observations. First, examining the figure reveals the Jim Cramer portfolio for inflation stocks has done extremely well. Congratulations to Cramer!

Next, consider this comparison.

Compare PDXs: 4-30-09  vs  6-19-09

Compare PDXs: 4-30-09 vs 6-19-09

We can see how this NWO collection has doubled ROI while holding volatility roughly constant and increasing the number of uncorrelated securities. We will leave you to choose the best components of this NWO collection, based on your own risk appetite.


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