Putting all your eggs in one S&P 500-shaped basket isn't diversification, it's wishful thinking
Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
What type of investor this portfolio is suitable for
Growth Investors
This portfolio is perfect for the adrenaline junkie who views investing as a high-stakes game of poker rather than a strategic chess match. It suggests a person with a high risk tolerance, possibly mistaking the stock market for a casino. The goals seem short-term, focusing on quick gains over steady growth. This investor likely thrives on market highs but may not have a solid plan for the inevitable lows. A longer investment horizon and a cooler head might prevent their financial ship from capsizing in rough waters.
Positions
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Fidelity 500 Index Fund
FXAIX - US3159117502 100.00%
So, we've got a portfolio that's as diversified as a monochrome rainbow. Putting 100% into the Fidelity 500 Index Fund is like saying you've diversified your diet by eating different parts of the same chicken. Sure, it's a solid fund, but this "diversification" strategy has the resilience of a chocolate teapot. The S&P 500 is great, but it's not immune to downturns, and when it sneezes, your portfolio could catch a cold.
Growth
Historically, this portfolio has done well, with a CAGR of 15.65%. That's like riding a roller coaster that mostly goes up. But remember, past performance is the financial equivalent of rearview mirrors — it tells you where you've been, not where you're going. And with a max drawdown of -33.78%, it's clear this ride has its drops. Days contributing 90% of returns being just 36 hints at how timing the market is as reliable as a weather forecast.
Projection
Monte Carlo simulations are like financial fortune-telling, except with math instead of crystal balls. This portfolio's future looks bright with all simulations showing positive returns, but relying solely on this could lead to overconfidence. Remember, Monte Carlo is a simulation, not a guarantee. It's based on historical data, which, as we've established, is as predictive as flipping a coin with hindsight.
Asset classes
- Stocks 100%
- Cash 0%
Asset classes in this portfolio are as diverse as a desert's flora. All in on stocks, with no cash or bonds to soften the blow of market volatility. It's like going into a pillow fight with a rock. Sure, you might hit hard, but you're also setting yourself up for a painful experience. A splash of bonds or real estate might not be as exciting as stocks, but they can help cushion falls.
Sectors
- Technology 33%
- Financials 14%
- Consumer Discretionary 11%
- Health Care 10%
- Telecommunications 10%
- Industrials 8%
- Consumer Staples 6%
- Energy 3%
- Utilities 2%
- Real Estate 2%
- Basic Materials 2%
The sector spread is like a buffet where half the table is tech. With 33% in technology, it's clear where the heart lies. Financial services, consumer cyclical, and healthcare follow, but it's like they're picking up the tech sector's leftovers. A tech downturn could turn this buffet into a diet plan real quick. Diversifying across sectors is more than just a good idea; it's your portfolio's lifeline.
Regions
- North America 99%
- Europe Developed 0%
- Asia Developed 0%
Geographically, this portfolio is playing it safer than a homebody, with 99% in North America. It's like deciding to travel the world but only visiting your backyard. The global market offers a buffet of opportunities beyond the American dream. Spreading out a bit could not only reduce risk but also tap into growth elsewhere.
Market capitalization
- Mega-cap 47%
- Large-cap 35%
- Mid-cap 18%
- Small-cap 1%
The market cap spread is like a party that's 47% giants, 35% big guys, and a sprinkle of everyone else. Mega and big caps dominate, offering stability but risking sluggish growth. Meanwhile, small caps are almost an afterthought. It's a conservative stance, yet diversifying more into small and medium caps could spice up growth potential without turning the portfolio into a pumpkin at midnight.
Dividends
- Fidelity 500 Index Fund 1.10%
- Weighted yield (per year) 1.10%
The dividend yield here is like finding loose change in your couch — nice to have but not life-changing. At 1.10%, it's a modest addition to the portfolio's overall performance. While not relying on dividends alone is wise, overlooking their compounding potential over time is like ignoring a slow but steady teammate in a relay race.
Ongoing product costs
- Fidelity 500 Index Fund 0.02%
- Weighted costs total (per year) 0.02%
At least the costs are low, with a total expense ratio of 0.02%. It's the silver lining in a portfolio that otherwise seems to be playing it fast and loose with diversification. Keeping costs down is like keeping the windows up while speeding — it reduces drag, but it doesn't change the fact that you're still speeding.
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