We are making trades in five of our seven Powerfund Portfolios. As longer term subscribers know, we tend to buy stock funds when the market takes a dive, and cut back as the market climbs.
For all but our riskier Daredevil Portfolio, these trades are to cut back slightly on our overall allocation to stocks. Specifically we are getting out of our recent move into financials near the market bottom in March 2009.
Our roughly 60% return in four months (double the overall market) in the Financials Select Sector SPDR ETF (XLF) marks a good exit point from financial services stocks. While financial stocks may have more upside, the bargains are gone and we don’t expect the sector to outperform the market going forward - the main reason to own a sector fund in the first place. For the time being we are increasing our bond allocation even though bonds are not screaming buys at current yields. We think we may see some more interesting stock fund opportunities in coming months.
For our Daredevil portfolio, we are cutting back on an even hotter fund we bought in March, our Russian ETF RSX, which is up around 80% even despite a recent pullback. We are also making some more significant changes to the portfolio (please read Daredevil trade commentary for more detail).
We're making trades in the Conservative portfolio, effective 6/30/2009:
<b>Sales:</b>
- SELL Financial Select Sector SPDR (XLF) from 5% to 0%
<b>Buys:</b>
- NEW ALLOCATION PIA Short-Term Securities (PIASX) to 5%
We are making trades in five of our seven Powerfund Portfolios. As longer term subscribers know, we tend to buy stock funds when the market takes a dive, and cut back as the market climbs.
For all but our riskier Daredevil Portfolio, these trades are to cut back slightly on our overall allocation to stocks. Specifically we are getting out of our recent move into financials near the market bottom in March 2009.
Our roughly 60% return in four months (double the overall market) in the Financials Select Sector SPDR ETF (XLF) marks a good exit point from financial services stocks. While financial stocks may have more upside, the bargains are gone and we don’t expect the sector to outperform the market going forward - the main reason to own a sector fund in the first place. For the time being we are increasing our bond allocation even though bonds are not screaming buys at current yields. We think we may see some more interesting stock fund opportunities in coming months.
For our Daredevil portfolio, we are cutting back on an even hotter fund we bought in March, our Russian ETF RSX, which is up around 80% even despite a recent pullback. We are also making some more significant changes to the portfolio (please read Daredevil trade commentary for more detail).
We're making trades in the Aggressive Growth portfolio, effective 6/30/2009:
<b>Sales:</b>
- SELL Financial Select Sector SPDR (XLF) from 5% to 0%
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We are making trades in five of our seven Powerfund Portfolios. As longer term subscribers know, we tend to buy stock funds when the market takes a dive, and cut back as the market climbs.
For all but our riskier Daredevil Portfolio, these trades are to cut back slightly on our overall allocation to stocks. Specifically we are getting out of our recent move into financials near the market bottom in March 2009.
Our roughly 60% return in four months (double the overall market) in the Financials Select Sector SPDR ETF (XLF) marks a good exit point from financial services stocks. While financial stocks may have more upside, the bargains are gone and we don’t expect the sector to outperform the market going forward - the main reason to own a sector fund in the first place. For the time being we are increasing our bond allocation even though bonds are not screaming buys at current yields. We think we may see some more interesting stock fund opportunities in coming months.
For our Daredevil portfolio, we are cutting back on an even hotter fund we bought in March, our Russian ETF RSX, which is up around 80% even despite a recent pullback. We are also making some more significant changes to the portfolio (please read Daredevil trade commentary for more detail).
We're making trades in the Conservative portfolio, effective 6/30/2009:
<b>Sales:</b>
- SELL Financial Select Sector SPDR (XLF) from 5% to 0%
<b>Buys:</b>
- NEW ALLOCATION PIA Short-Term Securities (PIASX) to 5%
We are making trades in five of our seven Powerfund Portfolios. As longer term subscribers know, we tend to buy stock funds when the market takes a dive, and cut back as the market climbs.
For all but our riskier Daredevil Portfolio, these trades are to cut back slightly on our overall allocation to stocks. Specifically we are getting out of our recent move into financials near the market bottom in March 2009.
Our roughly 60% return in four months (double the overall market) in the Financials Select Sector SPDR ETF (XLF) marks a good exit point from financial services stocks. While financial stocks may have more upside, the bargains are gone and we don’t expect the sector to outperform the market going forward - the main reason to own a sector fund in the first place. For the time being we are increasing our bond allocation even though bonds are not screaming buys at current yields. We think we may see some more interesting stock fund opportunities in coming months.
For our Daredevil portfolio, we are cutting back on an even hotter fund we bought in March, our Russian ETF RSX, which is up around 80% even despite a recent pullback. We are also making some more significant changes to the portfolio (please read Daredevil trade commentary for more detail).
We're making trades in the Aggressive Growth portfolio, effective 6/30/2009:
<b>Sales:</b>
- SELL Financial Select Sector SPDR (XLF) from 5% to 0%
<b>Buys:</b>
- INCREASE Harbor Bond (HABDX) from 5% to 10%