Unless this is your first time reading this site, you know that I am predominately a commodity stock investor. However, like many I learned to trade during the Internet bubble years with the likes of Cisco, Microsoft and Intel. After watching my portfolio melt down in 2000, I swore off tech stocks. I would dabble here and there, but a few weeks ago I made my first significant investment in tech in years. Interestingly, I back into the positions through my new love commodity stocks. Read all about it here.
Of all the news last week, PPI/CPI in line, oil flirting with $68/ barrel – the most exciting was Intel making a new 52 week high. If there is one truism in the stock market – it is that tech leads the market and semiconductors lead tech. Intel, the granddady of semiconductors, is making a comeback. This could be a fun ride.
BTW, the porfolios were on fire this week. Let’s take a look.
The Fab was the star of the week up 6.2%. To put it into perspective the S&P 500 is only up 8.1% for the year. PetroBras led the charge up 10.8%. Oil is breaking out, so there may be more weeks like this one from PBR. The scorecard reads as such: PBR 10.8%, PCU 6.3%, HBM.TO 4.6% and 3.8%. Year to date: 37.8%.
In most weeks, a 5.2% return would be receive top billing. Not this week. How about 4th out of 5 portfolios? That’s right. The Fab 4, Real Money and BRIC outperformed the BBO. That’s OK – I am planning for a slight modification to the BBO on 6/30. That should allow it to remain top dog through the remainder of the year. Year to date: 42.0%.
Real Money got a boost with the addition of PBR on Monday. Read here for details. Year to Date: 12.4%.
The Big Spend (TBS):
TBS was the slacker of the group up 2.9%. Although it lagged the others, it still outperformed the S&P 500. As long as we are outperforming the market, all is good. TBS is a newest portfolio as of 5/25/07. Read here for more details. Since inception: 5.7%.
The only true laggard amongst the portfolios is BRIC. Year to date it is lagging the S&P 500. After the stock market massacre on 2/27, I began searching for an alternative to BRIC. Read here for details. Since March 2, BRIC has doubled the performance of the S&P 500: 21.0% v. 10.5%. The alternative BRIC has barely kept up with the S&P 500 with a 9.2% return. So needless to say, the alternative BRIC will not being seeing the light of day. However, during the experiment I did identify a stud that will be moving into the BBO at the end of the month. For the week, BRIC was up 5.4%. Year to Date: 3.4%.
Here are the rest of the regulars: