Maggie’s FinLit Challenge Portfolio

Vanguard Dividend Appreciation ETF (VIG) – “I like the idea of companies with a strong history of increasing their dividends. This ETF is full of established, reliable companies that focus on steady growth. It fits with my cautious nature since it focuses on companies that are financially stable.”

Vanguard Total Bond Market ETF (BND) – “I appreciate the idea of steady income and stability, so a bond ETF like this, which provides broad exposure to U.S. investment-grade bonds, sounds ideal. Bonds are generally less risky, and I value security in my investments, so this one fits my financial goals perfectly.”

SPDR S&P 500 ETF (SPY) – “I’m not one to take crazy risks, but the S&P 500 is a solid, long-term performer. It’s a broad-market ETF that tracks the performance of 500 large companies in the U.S. This kind of stable, proven growth fits well with my long-term goals of financial security and building wealth for the future.”

Procter & Gamble (PG) – “Procter & Gamble is a well-established company that provides everyday household products. It has a long history of paying dividends and is known for its strong brand presence and consistent earnings. I like that it’s a company I can rely on to stay steady, especially in times of economic uncertainty.”

Coca-Cola (KO) – “Coca-Cola has been a reliable stock for years. It’s a big name in the beverage industry and has a track record of consistent dividends. I prefer these types of stable companies that have stood the test of time. Plus, it’s one of those brands people trust, which makes it feel like a safe bet in my eyes.”

Johnson & Johnson (JNJ) – “This company is a solid, long-standing healthcare giant. It’s known for its stability, even during economic downturns. Johnson & Johnson also pays reliable dividends, which aligns with my preference for steady, predictable income. Plus, healthcare is a necessity, so I feel secure investing in it for the long haul.”

Walmart (WMT) – “Walmart is a giant in the retail sector and a company that has managed to adapt over time. It’s a consistent performer with a solid dividend history, making it a good choice for my strategy. Plus, in tough economic times, people still need to buy essentials, which adds a layer of stability to Walmart’s performance.”

Tesla (TSLA) – “While Tesla has been a darling of the stock market for years, its volatility and the uncertainty surrounding its valuation make it a potential candidate for short-selling. The stock price has been extremely high compared to traditional valuation metrics, and there are risks related to its competition in the electric vehicle (EV) market, regulatory issues, and CEO Elon Musk’s unpredictable behavior. This could lead to a significant price correction, making it a potential short-sell pick for someone like me who’s more cautious and prefers stability.”

Meta Platforms (META) – “I’m wary of big tech companies like Meta because of their increasing regulatory scrutiny, privacy issues, and the growing backlash against their business practices. These challenges might negatively impact their long-term stability, and I’d consider short-selling their stock if I thought these problems would drive their value down over time.”