Our approach to this summer’s range bound market proved far too defensive for the record setting advance in September. Early in the month we sold most of our fully priced momentum based securities in the Income Plus account.
The collection and analysis of the second quarter 2010 financial statements is complete now and a broad based acceleration in corporate wealth is clear.
September was an excellent month for equity, particularly in emerging markets. Brazilian large-caps did exceedingly well.
"The "Innovative Companies" Model had a positive performance greater than the benchmark for the quarter ending September 2010 (13.33% versus 10.72% for the S&P 500), however, I am a little disappointed; I was too conservative in my stock selections.
The skirmishes in the currency market have escalated into open warfare. According to Brazilian finance minister Guido Mantega, the “international currency war” has begun. Although our Congress complains about China, the Federal Reserve has mounted the most aggressive campaign.
Some of my favorite stocks today are defensive, high-quality mega caps, such as WMT, JNJ, NVS, etc. Investors are worried about current economic problems, and many have shunned equities because they believe they will perform poorly in a slow economy.
Author: Bill DeShurko, 401 Advisor Disclaimer: Bill DeShurko owns VZ, NLY and ALSK in his Covestor Value Plus Model. October 4, 2010: Currently the portfolio has 8 holdings and approximately 10% in cash. Gains have been led by Verizon Wireless (VZ) with over a 10% gain in September including the […]
In the Rebound MF model, manager Rebound Trading uses technical analysis to choose up to seven larger cap, more-than-average-volume ETFs for the model. A stop loss order is placed on each ETF in the model. The top position in the model is Market Vectors Brazil Small Cap ETF (BRF), an […]
A few weeks ago we talked about the Technical Swing model on Covestor–a model that attempts to take advantage of short-term price swings—and the new positions manager Michael Arold added to the model. This week, Arold added two more. The first was BanColombia SA (NYSE: CIB), a bank with clients […]
After impressive gains yesterday, U.S. markets were mixed on Wednesday. The Dow Jones Industrial Average closed up 22.70 points to 10,967.42 while the Nasdaq fell 19.17 points to 2,380.66. The S&P 500 also closed lower, falling .83 points to 1,159.92. While we got some good news yesterday about the manufacturing […]
I underperformed in September. Such is reality. Mr. Market grades each of us in both the short term and the long term. The short term matters because the long term is the aggregate of all short terms. When I look at my short term grades, I need to be objective and critical of myself. Big heads never learn anything.
To the extent, if any, that the broad market is the benchmark for this Long/Short Opportunistic Style, I underperformed in September. This style takes short positions as well as long positions, and most recently has been adding to composite short positions (DCS and DDF at the end of August, CAF in early September), and selling long positions like FGF and SGF.