I have been reading for at least 9 months that it might be time to move into large caps. I have started to do my research because I believe the market is finally bearing out the logic, especially in technology.

I have done extremely well with international and small cap value in the last few years. AEMGX is up 75% since I bought it in June 2004. TASCX is up 30%+ over the same period. So much so that 27% of my portfolio is now international up from 20% just two years ago.

Currently my (retirement) allocations look like this:
51% Domestic Equities
27% Foreign
11% Cash
Remainder various bonds and commodity-link derivatives.

I am overweighted in small cap value and large cap value. I also have too much cash for my age (28). I need to do some work here. I am especially overweighted in financial services because of a small cap banking stock that I am holding while I wait for a takeover.

I have a nice weighting in healthcare with my only specialty fund, ICHCX which is up 38% in the last year. I had considered a pharma ETF like PPH but have opted to let the experts at Icon decide where my money should be in that sector. They are and have been heavily weighted in healthcare services.

I continue to eye-up VNQ because I am totally underweighted in Real Estate. I will write more about this at another time.

My current most likely move is to put at least $1000 into XLK. I think technology has a lot of room to run over the next five years+ and I also think that valuations in a relatively flat market have reached almost value status. This would be my first significant ETF holding.

Thoughts? Talk to me.mortgage calculator