The Conservative Portfolio dipped -0.42% in February.
February marked yet another negative month for stocks – the fourth in a row. The Dow was down 2.75%, the S&P 500 3.25%, the Nasdaq 4.95%. Developed market foreign stocks were up about 1% - 2%, largely on dollar weakness. Government bonds eked out a small gain while lower quality debt continued to slip. While all but one of our model portfolios was down, none fell as much as the major stock indexes.
At one point on Monday The S&P 500 had fallen 20% from its October 2007 peak – but then reversed course on yet another Federal Reserve intervention. We’ve had at least three instances this year where the Dow probably would have fallen 1,000 or more on credit fears, but the perennial solution of more money seems to calm people down, until the next trouble spot appears.
As scary as things look for stocks these days, we’re looking to increase our stock allocations across the portfolios and lower our bond stakes. Fund investors are bailing out of stock funds and this is often a good time to start increasing stakes. We’ve been running most of our portfolios underweight in stocks over the last couple of years, and a 20% correction is a good entry point. We’re watching how the current big investment bank failure plays out and checking fund flows into certain categories before we do the trade.
Harbor Bond (HABDX) was up 0.41% for the month. We’ve been reading Bill Gross’ latest commentary and it appears that he is going to slowly move into higher risk debt as super-safe government debt has a pathetically low yield. We intend to do the same by adding junk bond funds back to our portfolios.
We’re not jumping for joy with the 0.18% negative return for Nakoma Absolute Return (NARFX), but in a wild market this is what you hope for, mild swings.
Investment grade bonds were reasonably strong in February as rates continued down. Government bonds had the most upside. Dreyfus Bond Market Index (DBIRX) was up 0.30% for the month.
Healthcare stocks are not really delivering the benefit of stable earnings in a slowing economy. There has been some investor fear about the drug business lately and serious earnings trouble in hospitals as more and more uninsured patients add to growing problems with unpaid bills. Healthcare Select SPDR (XLV) was down 2.27% in February.
Vanguard Growth ETF fell just 1.41% even though tech stocks, a major component of this exchange trade fund, were weak. Minimal financial stock exposure is the main reason – financial stocks were down over 10% in February.
Janus Global Research was down just 0.90%, largely because foreign stocks were up.
The Aggressive Portfolio dropped -1.70% in February.
February marked yet another negative month for stocks – the fourth in a row. The Dow was down 2.75%, the S&P 500 3.25%, the Nasdaq 4.95%. Developed market foreign stocks were up about 1% - 2%, largely on dollar weakness. Government bonds eked out a small gain while lower quality debt continued to slip. While all but one of our model portfolios was down, none fell as much as the major stock indexes.
At one point on Monday The S&P 500 had fallen 20% from its October 2007 peak – but then reversed course on yet another Federal Reserve intervention. We’ve had at least three instances this year where the Dow probably would have fallen 1,000 or more on credit fears, but the perennial solution of more money seems to calm people down, until the next trouble spot appears.
As scary as things look for stocks these days, we’re looking to increase our stock allocations across the portfolios and lower our bond stakes. Fund investors are bailing out of stock funds and this is often a good time to start increasing stakes. We’ve been running most of our portfolios underweight in stocks over the last couple of years, and a 20% correction is a good entry point. We’re watching how the current big investment bank failure plays out and checking fund flows into certain categories before we do the trade.
We’re not jumping for joy with the 0.18% negative return for Nakoma Absolute Return (NARFX), but in a wild market this is what you hope for, mild swings.
In February Bridgeway Blue Chip (BRLIX) underperformed the S&P 500 by over a percentage point, with a -4.69% return. The reason for its relative failure was a big weighting in Google and some other weak tech stocks. The Nasdaq has been underperforming the S&P 500 for the last few months.
Healthcare stocks are not really delivering the benefit of stable earnings in a slowing economy. There has been some investor fear about the drug business lately and serious earnings trouble in hospitalsas more and more uninsured patients add to growing problems with unpaid bills. Healthcare Select SPDR (XLV) was down 2.27% in February.
Harbor Bond (HABDX) was up 0.41% for the month. We’ve been reading Bill Gross’ latest commentary and it appears that he is going to slowly move into higher risk debt as super-safe government debt has a pathetically low yield. We intend to do the same by adding junk bond funds back to our portfolios.
Janus Global Research was down just 0.90%, largely because foreign stocks were up.
Vanguard Growth ETF fell just 1.41% even though tech stocks, a major component of this exchange trade fund, were weak. Minimal financial stock exposure is the main reason – financial stocks were down over 10% in February.
February 2008 performance review
The Conservative Portfolio dipped -0.42% in February.
February marked yet another negative month for stocks – the fourth in a row. The Dow was down 2.75%, the S&P 500 3.25%, the Nasdaq 4.95%. Developed market foreign stocks were up about 1% - 2%, largely on dollar weakness. Government bonds eked out a small gain while lower quality debt continued to slip. While all but one of our model portfolios was down, none fell as much as the major stock indexes.
At one point on Monday The S&P 500 had fallen 20% from its October 2007 peak – but then reversed course on yet another Federal Reserve intervention. We’ve had at least three instances this year where the Dow probably would have fallen 1,000 or more on credit fears, but the perennial solution of more money seems to calm people down, until the next trouble spot appears.
As scary as things look for stocks these days, we’re looking to increase our stock allocations across the portfolios and lower our bond stakes. Fund investors are bailing out of stock funds and this is often a good time to start increasing stakes. We’ve been running most of our portfolios underweight in stocks over the last couple of years, and a 20% correction is a good entry point. We’re watching how the current big investment bank failure plays out and checking fund flows into certain categories before we do the trade.
Harbor Bond (HABDX) was up 0.41% for the month. We’ve been reading Bill Gross’ latest commentary and it appears that he is going to slowly move into higher risk debt as super-safe government debt has a pathetically low yield. We intend to do the same by adding junk bond funds back to our portfolios.
We’re not jumping for joy with the 0.18% negative return for Nakoma Absolute Return (NARFX), but in a wild market this is what you hope for, mild swings.
Investment grade bonds were reasonably strong in February as rates continued down. Government bonds had the most upside. Dreyfus Bond Market Index (DBIRX) was up 0.30% for the month.
Healthcare stocks are not really delivering the benefit of stable earnings in a slowing economy. There has been some investor fear about the drug business lately and serious earnings trouble in hospitals as more and more uninsured patients add to growing problems with unpaid bills. Healthcare Select SPDR (XLV) was down 2.27% in February.
Vanguard Growth ETF fell just 1.41% even though tech stocks, a major component of this exchange trade fund, were weak. Minimal financial stock exposure is the main reason – financial stocks were down over 10% in February.
Janus Global Research was down just 0.90%, largely because foreign stocks were up.
The Aggressive Portfolio dropped -1.70% in February.
February marked yet another negative month for stocks – the fourth in a row. The Dow was down 2.75%, the S&P 500 3.25%, the Nasdaq 4.95%. Developed market foreign stocks were up about 1% - 2%, largely on dollar weakness. Government bonds eked out a small gain while lower quality debt continued to slip. While all but one of our model portfolios was down, none fell as much as the major stock indexes.
At one point on Monday The S&P 500 had fallen 20% from its October 2007 peak – but then reversed course on yet another Federal Reserve intervention. We’ve had at least three instances this year where the Dow probably would have fallen 1,000 or more on credit fears, but the perennial solution of more money seems to calm people down, until the next trouble spot appears.
As scary as things look for stocks these days, we’re looking to increase our stock allocations across the portfolios and lower our bond stakes. Fund investors are bailing out of stock funds and this is often a good time to start increasing stakes. We’ve been running most of our portfolios underweight in stocks over the last couple of years, and a 20% correction is a good entry point. We’re watching how the current big investment bank failure plays out and checking fund flows into certain categories before we do the trade.
We’re not jumping for joy with the 0.18% negative return for Nakoma Absolute Return (NARFX), but in a wild market this is what you hope for, mild swings.
In February Bridgeway Blue Chip (BRLIX) underperformed the S&P 500 by over a percentage point, with a -4.69% return. The reason for its relative failure was a big weighting in Google and some other weak tech stocks. The Nasdaq has been underperforming the S&P 500 for the last few months.
Healthcare stocks are not really delivering the benefit of stable earnings in a slowing economy. There has been some investor fear about the drug business lately and serious earnings trouble in hospitalsas more and more uninsured patients add to growing problems with unpaid bills. Healthcare Select SPDR (XLV) was down 2.27% in February.
Harbor Bond (HABDX) was up 0.41% for the month. We’ve been reading Bill Gross’ latest commentary and it appears that he is going to slowly move into higher risk debt as super-safe government debt has a pathetically low yield. We intend to do the same by adding junk bond funds back to our portfolios.
Janus Global Research was down just 0.90%, largely because foreign stocks were up.
Vanguard Growth ETF fell just 1.41% even though tech stocks, a major component of this exchange trade fund, were weak. Minimal financial stock exposure is the main reason – financial stocks were down over 10% in February.