Week in Review 6/8 – Bond Market Meets Stock Market and Wins

I am always amazed at the attention 30 stocks can generate, but the DOW remains the center of the stock universe.  On Tuesday, Wednesday and Thursday it shed 400 points; creating flash backs from February 27 when it swooned 400 points in one day.  Bill Gross, aka Mr. Bonds, raised his estimates for bond yields.  Rising interest rates are the market’s kryptonite. 

Somehow all was forgotten on Friday as the DOW reclaimed 157 points.  I heard someone on bubblevision say that the market has closed up the last 12 Fridays in a row.   Often merger activity is announced on Mondays.  By buying on Fridays, investors are positioning themselves for any pop on a merger announcement.  The bottom line is volatility rules and as investors we must get accustomed to 400-500 point weekly swings. 

Since the introduction of The Big Spend portfolio I pay more attention to the general market, but my forte is commodity stocks.  Commodity stocks take volatility to another level.  Some weeks I would be happy with only a DOW equivalent 400 point swing.  This was one of those weeks.  Let’s look at the portfolios.

Fab 4:

The Fab 4 was down 2.2% for the week.  I would have been worse, but BHP was up as it continues to be subject to buyout rumors.  The week’s scorecard read:  BHP 3.4%, PBR -1.5%, PCU -5.8% and HBM.TO -4.4%.  Year to date 29.7%.


The BBO shed 3.1%, but it is still leading all portfolios up 35% year to date.

Real Money:

A tough week down  4.1%.  Read here for more details as we were shaken out a couple positions.

The Big Spend (TBS):

TBS held up the best of all the portfolios by only shedding 0.9% for the week.  Steve Jobs is either loving or hating life as expectations continue building for the iPhone.  If it lives up to the hype – Apple will dominant another niche.  The week’s scorecard read:  AAPL 5.2%, MA -5.0%, NOK -0.5%, RIMM 0.4%, SNE -4.2%.


BRICs struggles continue closing down 2.9% for the week.  I personally bailed on this strategy earlier this year and have been working on an alternative BRIC portfolio.  Read here for details.  Year to date BRIC is down 1.9%. 

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
TBS – The Big Spend basket

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
TBS: Link

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