Asset AllocationIn the second quarter, my asset allocation was reasonably close to my target. What a difference a year makes. For so long, I was over-allocated in my employer's stock. Now I am 1.8% under-allocated in it. None of the variances are above my 2.5% tolerance, so I will adjusted them with future purchases.
2010-Q2 PerformanceIn the second quarter, my portfolio gave back some of the gains earned in Q1. After trailing the S&P in 2009, this year my income portfolios are out-performing the S&P through June. Below are the YTD performances of various categories along with my S&P 500 benchmark (VFINX):
|Portfolio||Wtd. Avg.||2010 YTD||2009||2008|
|Pocket Change (9/08)||9.1%||-3.8%||21.1%||-7.3%|
|S&P 500 (VFINX)||-5.0%||-5.6%||26.5%||-36.3%|
|Income Stocks vs S&P||7.0%||8.2%||-2.6%||15.9%|
|Income Stocks vs BRK||9.2%||-21.0%||21.7%||11.7%|
Passive IncomeFor Q2/2010 my passive income averaged $992/month, up slightly from the $812/month in Q1. The increase resulted from additional investments, dividend growth and from higher income on cash holdings as I moved them from a MMA to short-term bonds. The above amounts include all sources of passive income in my taxable accounts, primarily interest and dividends. It excludes my Roth IRA, 401(k) and blog income (which is not passive).
The next update will be in mid-October. As always, thanks for reading!
(Photo: sanja gjenero)