Real Portfolio now active….1st purchase was XLF

So now that I have accumulated my first $500 after the completion of my CD ladder, I was on my way to activating my real money portfolio account.  The first purchase was the Financial Service Sector ETF (XLF) for the following reasons:

- Most if not all of the bad news for the banks was priced in unless the TARP funding didn’t work (a risk I was willing to take)

- Dividend Yield at the time of purchase was well above 7%

- I didn’t want to try and select which company would last through the crisis, so I decided with this sector ETF

- With the long-term horizon that I have in building this portfolio, willing to invest in this sector since there will be a place for financials in the future state of the economy, maybe not at the same profit levels as before

- Credit Spreads are providing a great opportunity to create new value for the banks

So, let’s see how this first $500 does….I have created a new account under my net worth section and will update the stock price on a weekly basis.

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Author Disclosure: I am long shares of XLF

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