I scratched my chin and occasionally picked my nose for a long time while coming up with these. For this year’s CNBC Million Dollar Portfolio Challenge, I decided to cluster my stock selections by sector.
Since we can create five portfolios with a minimum of four stocks each, I did just that: five portfolios with four stocks each. Going with just four stocks maximizes my chances; any more than that, and I’d be diversifying my portfolios too much. The name of the game here isn’t Who’s the Best Real-World Market Investor, it’s Who’s the Best Short-Term (Two-Month) CNBC-Fabricated-World Market Investor.
My initial picks:
Portfolio 1: Entertainment
Let’s see how Marvel does with this summer’s upcoming blockbuster movies. BTW, Iron Man rocked!
Portfolio 2: Energy
Energy’s a volatile sector and oil & gas prices are still rising. Perfect combo for wild stock spikes. Hopefully mostly up in the next two months.
Portfolio 3: Discount Shopping
Some people are already tightening their belts. That means more shopping at discount stores. Everyone loves cheap stuff!
Portfolio 4: Technology
I have the least confidence in this portfolio; I don’t know how strong technology will be growing in the next two months. But its volatility could make for some huge price swings.
Portfolio 5: First Week’s Top Market Movers
This one simply takes the first week’s top market movers. It’s a random grouping, a what-the-hell portfolio, because: what the hell.
What are your picks?