Never miss a trade! Sign up for MAXfunds Powerfund Portfolio’s FREE email alerts! CLICK HERE!

June 2017 Performance Review

July 4, 2017

Most markets flattened out in June with very few areas rising or falling much. The strongest areas in stocks were small-cap in general and value oriented stocks of all sizes. China, Japan, and other markets in Asia where strong while Europe was weak. Yield oriented stocks were soft. Bonds in general had an uneventful June but we just saw longer-term bonds go up in price (yields down) while shorter-term bond prices fell as the yield curve flattened out.

Our Conservative portfolio gained 0.08% in June. Our Aggressive portfolio gained 0.23%. Benchmark Vanguard funds for June 2017 were as follows: Vanguard 500 Index Fund (VFINX) up 0.61%; Vanguard Total Bond Market Index Fund (VBMFX) up 0.03%; Vanguard Developed Markets Index Fund (VTMGX) up 0.57%; Vanguard Emerging Markets Stock Index (VEIEX) up 0.78%; Vanguard Star Fund (VGSTX), a total global balanced portfolio, up 0.76%.

Technology stocks have recently started to falter, perhaps on the growing worry that things have gotten a little too euphoric in startups and tech stocks.

It's no 1999 bubble yet, but valuations of the tech leaders are getting to levels that are going to require unrealisticallly rapid growth to continue to stay in the black, and actual solid profit margins to appear someday.

The trouble is, some of these companies compete with each other aggressively, and are getting so large regulators may start thinking monopoly. Google (Alphabet) just got fined around $3B by European Union regulators.

Meanwhile hard hit areas like energy stocks may turn around as investors make a move back to the old economy so to say.

Oil's renewed drop pushed our oil short PowerShares DB Crude Oil Dble Short (DTO) up by 9.19% with our gold short Gold Short (DZZ) close by with a 4.65% return.

Of our non-shorts, only Vanguard Value (VTV) up 1.8% and iShares MSCI Italy Capped (EWI) up 1.54% were noteworthy performers, the latters performance defying a down month for European stocks in general (as seen in our holding Vanguard European ETF (VGK), which fell 0.53%).

June was a rough month for our small-cap and biotech shorts, with Proshares Ultrashort Russel2000 (TWM) down 6.7% and Proshares Ultrashort NASDAQ Biotech (BIS) dropping 16.29%.

Utilities and telecom were weak: Vanguard Utilities (VPU) fell 3.1% and Vanguard Telecom Services ETF (VOX) 2.29%. The good news here is that telecom is starting to be attractive again given recent returns and investors behavior.

Longer-term bonds were the best debt performers with Vanguard Long-Term Bond Index ETF (BLV) gaining 0.89%, even with rates creeping up on the short- to mid-range of the yield curve (where most investors are).

Our lone loser in bonds was Vanguard Mortgage-Backed Securities (VMBS), which fell 0.26%.

Stock Funds1mo %
PowerShares DB Crude Oil Dble Short (DTO)9.19%
Gold Short (DZZ)4.65%
Vanguard Value (VTV)1.80%
iShares MSCI Italy Capped (EWI)1.54%
[Benchmark] Vanguard Emerging Mkts Stock Idx (VEIEX)0.78%
ETRACS 1xMonthly Short Alerian MLP (MLPS)0.75%
iShares MSCI BRIC Index (BKF)0.68%
Vanguard Europe Pacific ETF (VEA)0.62%
[Benchmark] Vanguard 500 Index (VFINX)0.61%
[Benchmark] Vanguard Tax-Managed Intl Adm (VTMGX)0.57%
Artisan Global Equity (ARTHX)0.55%
iShares Mortgage REIT (REM)0.32%
Homestead Value (HOVLX)0.28%
Vanguard European ETF (VGK)-0.53%
Vanguard Telecom Services ETF (VOX)-2.29%
Vanguard Utilities (VPU)-3.10%
Proshares Ultrashort Russel2000 (TWM)-6.69%
Proshares Ultrashort NASDAQ Biotech (BIS)-16.29%
Bond Funds1mo %
Vanguard Long-Term Bond Index ETF (BLV)0.89%
Vanguard Extended Duration Treasury (EDV)0.54%
Artisan High Income Fund (ARTFX)0.36%
SPDR Barclays Intl. Treasury (BWX)0.33%
[Benchmark] Vanguard Total Bond Index (VBMFX)0.03%
Vanguard Mortgage-Backed Securities (VMBS)-0.26%