Harmoney

[alistar_mid]

The problem though is that the minute you increase exposure per loan you decrease diversification. Those of you having read my previous posts will know that I started out investing up to $1,000 per loan (for A). I refuse to alter my criteria to take more risk in a climate where, despite low interest rates forecast to remain for many more months/years, the headwinds facing our and global economies are growing. Consequently my Harmoney portfolio has dropped from $121k in January to $79k today. That isn't a function of other retailers taking more exposure, but that the quality of the offering has fallen.

I'm fine with it, I'm at about $60k now, another $40k in blocks of $400 is still 100 loans.
And its the relative return to the risk free rate (ie maybe a bond fund at 4%), there maybe headwinds coming but I'm still getting 12%, this has to catastrophically drop to around 4% for me to lose out

I'm probably just going to "cycle" money in, then have it auto withdraw over time and take exposure back down to $50k from $100k, sending the weekly proceeds into index funds.

[BJ1]

[QUOTE=alistar_mid; this has to catastrophically drop to around 4% for me to lose out.[/QUOTE]
No argument on that score Alistair. Personally, I'm processing a complete review of all my investment strategies and haven't yet got comfortable with changing the criteria for Harmoney, not helped by the size of loans I am seeing on the dashboard.