The Dow just closed at 10550 or thereabouts, so perhaps I should mention a word or two about how I manage my portfolio. A week ago we had some discussion about the fact that professional advisers average a return of 6.8 percent while private individuals average 6.4.
I took over management of my own retirement fund on April 16, 2003, so I am approaching the 21 month mark, and I have achieved 17.5 percent growth, averaging out to almost exactly 10 percent a year.
The only item that I trade is the Dow Jones Diamonds (symbol=DIA), which essentially follow the Dow index. In other words, if the Dow is 10000, the Diamond sells for approximately $100. This way my fate is tied to the Dow, which has averaged 10 percent annual growth for almost a century.
It also pays a small dividend and is a great all-around deal. Since I'm a bit of a market timer, I sold them all at $107.96 apiece at the end of December, right below the peak of $108.55 and am now sitting on the sidelines with cash, waiting for a more hospitable climate for reentry.