Week in Review 5/11 – Mining Stocks Exploding

On Wednesday, the market liked the Feds decision to hold interest rates at 5.25% and closed higher.  After thinking about it overnight, the market decided that it wasn’t pleased with the Fed’s statement.  Since the Fed didn’t provide any indications that it was closer to lowering rates – the market sold off on Thursday.  By Friday, all was good again as the PPI data eased inflation concerns.   That’s the way it is in the market these days – this wall of worry keep investors on thier toes.  By the end of the week, the S&P 500 had nothing to show for its efforts as it closed flat.  The DOW was up 0.5%.

However, the action was in the mining stocks.  Aloca started the week off making a bid for Alcan.  Then rumors surfaced about a BHP Billiton / Rio Tinto deal.  Needless to say, the BBO exploded.  For the week it was up nearly 8%.  It is nice being in the right place at the right time.

So, let’s look at the porfolios.

Fab 4:

Another nice week for the Fab4: BHP 1.4%, PBR 0.0%, PCU 7.2%, HBM.TO 5.6%.  As a group, the portfolio was up 3.6% for the week.  This brings the year to date totals to 28.8%.

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BBO:

The BBO has become the “What more can I say” portfolio.  Week after week it continues piling on the gains.  For the week, it was up 7.8%.  Much of that can be contributed to Alcoa’s bid to buy Alcan; lifting Alcan up a nice cool 31% for the week.  Year to date, the BBO is up 34.4%.  Is it time to sell in May and go away? 

Real Money:

The Real Money portfolio is kicking into gear – for the week it was up 3.3%.  Read here for details.

BRIC:

The BRIC portfolio is slowly working its way to positive territory.  For the week, it was up 0.9%.  I personally bailed on this strategy earlier this year and have been working on an alternative BRIC portfolio.  Read here for details.

Here are the rest of the regulars:

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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
USO – Oil 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:

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
USO – Oil 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 
BBO: Link, Link
BRIC,  Link
PHO: Link
Real Money: Link
Fab 4: Link

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