Portfolio Update - 7/31/06
By proceeding, I acknowledge that I have read and understood the Disclaimer and Copyright Statements .
Despite the market having it’s best week in two years, the major indexes closed out the month of July mixed. The mixed monthly performance of the indexes has been a microcosm for the year. Large Cap up marginally while Tech is down significantly. Here is how the S&P 500 and the NASDAQ 100 have shaped up:
Index…………………………July………………………………………….YTD
S&P 500:………………..…0.5%………………………………………..3.3%
NASDAQ 100:………..…(3.7%)………………….………………….(8.3%)
My model portfolio continues to hold a slight lead compared to our benchmark Couch Potato Portfolio which is up 1.5% YTD. Your accounts have seen appreciation in the range of 3.5 – 5%. While I haven’t set the world of fire, I’ve provided decent returns in excess of the market averages. As I’ve stated numerous times, now is not the time to be greedy, rather my primary goal is to protect your gains from the last 3 years.
While I maintain that the market will continue to consolidate over the next 12 – 18 months, a couple of stubborn technical indicators are signaling that the market may rally another couple times before we see any significant sell offs (operative word is “may”, the market just as easily may not rally before another sell off occurs). It is improbable that the market will rally above the highs set in May. While a couple indicators are still neutral, far more are signaling a bear market and therefore, I will continue to position your portfolio defensively.
