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The purpose of The 100K Portfolio is to substantially outperform the S&P 500 index.

The 100K Portfolio trades in ETFs, stocks and options, long and short.

Approximately 30% of The 100K Portfolio consists of an actively rebalanced equal-weight of the 9 sector SPDRs. The rest of The 100K Portfolio is a select mix of company stocks, REITs, currency ETFs, government & corporate bond ETFs, emerging market & commodity ETFs.

Various option strategies are used in The 100K Portfolio.

Economic assumptions used in The 100K Portfolio are largely based on the economic projections of the Economic Cycle Research Institute, an independent research firm not associated with SystemicCapital.com.

A proprietary market model is used to determine market trends. Buy and sell decisions are ultimately discretionary, as not all model components have been quantified.

The 100K Portfolio system is intended for active traders. All trades are placed the day before the market opens (typically, within a couple hours after the previous market close). No trades are initiated during the day. All trades are open overnight.

Trades are intended to last several days to several weeks or longer.
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SystemicCapital.com starts with a vision of the future.

From this vision, central themes are developed. The themes represent a powerful market tide that you want working with you.

For the tradable future, economic projections are taken largely from the views of the Economic Cycle Research Institute, which has a long record of being in front of the curve.

THEMES:

Emerging Markets

Hundreds of millions of people are now “coming on line”, economically speaking, in China, India, Brazil and other countries. This represents a massive expansion of our economic system over the next few years. This theme is the most powerful, driving many of the others.

Energy

Oil production has peaked, and as started a slow decline. As the current economic recover takes hold, demand will drive the search for additional sources of energy.

Natural gas will play a central role in the future of US energy supplies. Oil, coal, nuclear, wind, solar and others will also be an important part of the supply equation. There will be enough demand for all of them.

Commodities

Hundreds of millions of people will want to buy things they couldn’t buy before. They will want to eat food they couldn’t afford before. These demand pressures will lead to an increase in commodity prices, despite a likely strengthening of the USD.

Wireless Infrastructure

Smart phones and other wireless devices will revolutionize the way people interact with the Internet and each other. Expect and insatiable demand for wireless data and the companies that play some part in providing this service.

Biotech

Now that erectile dysfunction is under control, expect a new era of anti-cancer and anti-viral drugs that will change humanity and the economics of healthcare.

US Real Estate

The real estate market has already bottomed or is close to bottoming in the US. After such a steep historical decline, this market will slowly trend up for years to come. Investors could outperform with cherry-picked REITs.

Water Management

Water management issues, including purification and agricultural availability, will be a growing problem. Expect large amounts of capital to flow into this area in an attempt to find solutions, or at least to profit from the attempt to find solutions.

Dividend Plays

Market conditions are likely to remain choppy in 2010, as stimulus measures decrease and market participants attempt to find fair value. Dividend paying stocks should play in important role in smoothing your returns.

Portfolio Balance

A balanced portfolio helps to spread risk, despite a high asset class correlation in the past couple years. This means having positions in growth & value, emerging & developed, commodities & tech, REITs, bond & currency funds.