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The Dollar Cost Averaging Experiment Results thru 5/31- CEF Continues to Lag

Recall the objective of this experiment is to produce double digit returns by dollar cost averaging into either financial assets or hard assets based on where we are in the cycle.  I contend that we are in the hard asset phase.  Read “The No-Brainer Investment Strategy to Double Digit Returns” for more details.

Gold and Gold stocks continue to lag the broad market.  However, their action this week especially on Thursday and Friday looks promising.  For the week, CEF 3.3% and GDX 4.7% v. S&P 500 1.3%.  It looks like their days of underperforming may be numbered.

Here is the latest update: Continue reading “The Dollar Cost Averaging Experiment Results thru 5/31- CEF Continues to Lag”

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Introducing The Big Spend Portfolio

As an entrepreneur, I am constantly thinking in terms of opportunities.  A little over a year ago my mother, who lives in Florida, had a car accident.  She had a visiting nurse come in for a few weeks and I thought what a great business this would be.  With an aging population, especially in Florida, there would be a tremendous demand for such services.  Other services such as a personal shopper popped into my head.  When I came back to Boston, that idea would fade and would be replaced with others. 

Reading a report “Five Key trends in Chinese economy: Merrill Lynch,” about a month ago and a television commercial put my opportunistic mind in gear.  I had been thinking about creating another BBO like basket.  I am sure by now you know that the BBO is a basket of stocks based on the industrialization of the emerging markets.  It leverages the infrastructure boom as the emerging markets build railways, airports, highways, etc.  This is actually #2 on the Merrill Lynch list.  I have investing in this theme for the last three years.

Their #1 trend has captured my attention: Continue reading “Introducing The Big Spend Portfolio”

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Week in Review 5/25 – Greenspan Opens His Trap Again

Greenspan reminds me of a retired heavyweight boxer.  After the last big fight, retirement sounded like a good idea.  However, retirement turns out to be boring especially since he is not the center of attention anymore.  The desire for the cheers and the admiration draws the boxer out of retirement for one more fight. 

Greenspan has been the most powerful person in the financial universe for so long that it is driving him nuts not to be the “man” anymore.  He relished in his capacity to move markets with stupid little things like how thick is his briefcase.  His desire for the spotlight led to utterances like a few months ago when he said that there is a 33% chance of a U.S. recession this year.    Now all of a sudden he knows how to speak in plain English.  When he was Fed Chairman, he talked in riddles. 

Continue reading “Week in Review 5/25 – Greenspan Opens His Trap Again”

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Week in Review 5/18 – Metals Lag While Market Continues Onward

Another up week for the DOW.  Matter of fact it is the seventh up week in a row.  I love it when the market goes up, but how long can this continue?  I imagine as long as people continue asking that question.  Everyone is expecting a pull-back, but the market seldom accommodates everyone.  The DOW may prove that trees can grow to the sky. 

CNBC will switch its record watch to the S&P 500 this week.  It only needs 5 points to break its all-time high.  Professionals consider the S&P 500 to be a much better barometer of the market than the DOW.  So, the champagne will definitely flow when this record falls.  

The metals laid down this week, but oil was the shining star in the commodity patch.  If you bought gas this week – you know what I am talking about.  Oil was up 2.9% and the oil stocks followed its lead.  Actually the oil stocks have been strong for nearly two months and oil is finally playing catch up.  This bodes well, as equities normally lead the commodity in bull markets.

Since the portfolios are biased towards commodities, more specifically the metals, they missed out on much of the excitement this week.  So, let’s take a look at the damage. Continue reading “Week in Review 5/18 – Metals Lag While Market Continues Onward”