Week in Review 3/9 – Correction is Over NOT!

The Market rebounded nicely last week.  It was led by the Philadelphia Semiconductor Index (SOXX) 2.9% gain.  The SOXX is the only major index in the black year to date.  The DOW, S&P 500 and NASDAQ are still bleeding red.  Everyone knows that a 5-7% smack down is needed every once in awhile.  Last week’s correction was highly anticipated.  However, the swiftness caught many be surprised.  So, we got what was needed and we are off to the races again.  Not quite so fast – at least with my money.

All markets have corrections that’s just a fact of life.  However, there are two requirements price and time.  One week is simply not enough time to flush out frothiness.  Almost by definition markets climb a wall of worry.  There is simply too much happy talk from the talking heads.  I will let them take the plunge first and see what happens.

Base Metals led the charge this week in the commodity patch with Copper’s 2.8% gain.  Gold was up 1.2%.  Silver and Oil were basically flat with gains of 0.1% and 0.2% respectively.

So, how did the portfolios perform?

Fab 4:

The Fab Four was up 1.5% for the week.  All of the stocks were up except Hudbay Minerals (HBM.TO) -2.0%.  BHP Billiton (BHP), PetroBras (PBR), and  Southern Cooper (PCU) weighed in with gains of 3.4%, 2.9% and 2.6% respectively. Year to date the portfolio is up 4.7%. PCU continues to impress with gains of 28.2% year to date.  


The BBO strength continued with a weekly gain of 3.8%.  For the year, it is up 4.8%.  Clearly out performing the market.

Real Money:

Real Money is currently all cash and is flat for the year.  Read here for details.


BRIC was up for a change.  It returned 3.0% for the week.  However, it is deeply in the red year to date; to the tune of -12.2%.  I have been scaling out of this basket all year due to its lack of performance.  I currently am completely out.  I have been working on an alternative.  Read here for details.

Here are the rest of the regulars:


SOX – Semiconductor Index
CEF – Gold and Silver Bullion ETF
CRESY – Argentine Beef, Grain and Farmland
GDX – Gold Mining Stocks ETF
GLD – Gold Bullion Exchange Traded Fund (ETF)
PHO – Water Resources ETF
BBO (Big-Build Out) – basket of 12 stocks critical to the industrialization of BRIC
BRIC – basket of 4 country ETFs: Brazil, Russia, India and China
Real Money – actual trades from one of my portfolios

Refer to the following links for more information on above stocks and portfolios:

GDX, CEF: Link
USO: Link
PHO: Link
Real Money: Link
Fab 4: Link

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