The Holiday Portfolio's Hot Stuffing

For the holiday portfolio, its time to talk turkey.

It's been a tough market. Concerns over the fallout from the subprime debacle continue to spread, and when that was combined with fears of a slowing economy and skyrocketing oil prices, the markets took a late-summer swoon. The beginning of fall has been no better, and the markets remain unsettled.

Yet, with the exception of the lone financial entrant in the Holiday Portfolio, our stocks have held up well. The key: diversification.

Before we dig into the details, a quick reminder of the Holiday Portfolio's purpose and ground rules.

The Year-Round View

The concept behind the Holiday Portfolio is straightforward: I select a group of five stocks that I believe deserve watching over the next 12 months, and I follow them -- regardless of their performance -- throughout the year. I'll revisit the portfolio on each market holiday and, at times, make comments about the stocks in RealMoney's Columnist Conversation. The only way a stock is removed from the portfolio is if it merges with another company or ceases to trade on a major exchange.

The portfolio serves two purposes. First, it follows the fundamental progress of a group of stocks over a lengthy period of time. My hope is that the portfolio will serve as a forum for in-depth discussion of investment decisions and company strategy and will reinforce the importance of ongoing portfolio analysis. Second, it provides an opportunity to look at both short-term trading strategies and longer-term investment strategies with the same stocks.