My favorite ETF is SPY (S&P500) and DIA (Dow Jones Industrial Average)
I own these in my ROTH. I have 80% in Dow Jones and 20% in S&P500. In my brokerage account I also own these ETFs and a bunch of other stocks based on the Magic Formula. The name sounds sketchy, but the method seemed promising. However, after more research I've decided this "magic formula" isn't so magical after all. I've done the formula for about 1 and a half to 2 years now. It hasn't performed very well. It is still above 0%, but not anywhere close to the benchmark for the last two years.
I'm looking for more ETFs/stocks to diversify. Is owning just S&P 500 and Dow Jones diversified enough? I don't want to get too diversified. I'm pretty sure S&P500 doesn't have anything in foreign markets which may be a good thing for me to get into.
My ROTH is my safe money. My brokerage is my moderate risk account. So I need to figure out what to do with this extra money that I will be taking out of these magic formula stocks each 3 months progressively for the next year. I need something good to put this money into. I'm leaning on the side of some sort of ETF or ETFs of some kind, but I'm open to suggestions.
I'm also considering purchasing my first house as a hedge against everything going to hell and also to live in.
I want to pick something for long term. Hopefully like 10 to 20 years or so. I can do mid or short term too, but preferably something that will be around for awhile. I'm pretty open to suggestions.
I was looking at TWMJF as one of my more risky investments a couple months ago since marijuana could possibly grow. I think pot will become legal in a lot of states in the following years. However, looking at the financial chart on Yahoo finance it shows -27.97M in operating cashflow and -55.45M in leveraged cashflow. Should this be a red flag? A few months ago I decided not to invest, because this may be a bad sign. TSE may be another good option? In the movie the graduate that one guy says "plastics" so maybe TSE is a good idea.
Thoughts?