Dynamic Growth: ETF Portfolio
NEW BUYS:
Ultrashort Oil & Gas Proshares- DUG: Bought Friday, May 23rd at a price of $27.85.
NEW SELLS:
OIH: Oil Services HOLDRS- Sold Friday May 23rd at $210.92.
SWITCHES:
None
Here are our Top 10 ETF's for the week of May 23rd:
1) EWZ: Brazil Index- .451
2) EEB: Claymore ETF BNY BRIC- .413
3) SLX: Market Vectors Steel Index Fund- .465
4) DBA: Powershares DB Agriculture Fund- .492
5) FXF: Currency Shares Swiss Franc Trust- .455
6) ADRE: BLDRS Emerging Markets 50 ADS Index Fund- .330
7) DUG: Ultrashort Oil & Gas Proshares- Not Rated
8) PGJ: PS Golden Dragon China Fund- .223
9) KBE: KBW Bank ETF- Not Rated
10) IYF: iShares Dow Jones US Financial Sector- Not Rated
Notes:
By selling the OIH: Oil Services HOLDRS we locked in a gain of $28.59 or 15.68%. The annualized the gain is 23.55%.
We replaced the Oil Services HOLDRS with an oil short. We bought Ultrashort Oil & Gas Proshares- DUG at a price of $27.85.
Fidelity Sector Fund Portfolio:
NEW BUYS:
None
NEW SELLS:
FSESX- Energy Services: on Friday at a price of $108.30
FNARX: Natural Resources: on Friday at a price of $43.93
FSDPX: Materials: on Friday at a price of $62.42
SWITCHES:
From HM to top 10:
FSDAX: Defense & Aerospace
Here are our Top 8 Fidelity Sector Funds for May 2008
1) FSENX- Energy
2) FSCHX: Chemicals
3) FDFAX: Consumer Staples
4) FSMEX: Medical Equipment
5) FSCGX: Industrial Equipment
6) FSDAX: Defense & Aerospace
7) FWRLX- Wireless
8) FSRBX: Banking
9)
10)
Honorable Mention (Holds):
None
Notes:
I decided to sell three of our four energy holdings on Friday. With all the attention oil was getting, it sounded more like a short term bubble than a viable long term investment. All I know is the oil trade looks very speculative at this stage of the game.
While oil prices can continue to climb, I believe the politicians will eventually punish the oil companies with a windfall profits tax. This is especially true if the democrats take the White House and Congress in November.
We are holding only 8 funds in the top 10 for now, so hold the remaining proceeds in cash for the time being.
By selling our three of our four energy funds, we locked in some very healthy gains;
FSESX- Energy Services
Bought 07-02-2007 98.2641 shares @ $87.65
Sold 05-23-2008 @ $108.30
Gain +$2029.15 plus dividends of $448.08= +$2477.23 (+28.76%/ annualized=+32.20%)
FNARX: Natural Resources
Bought 10-01-07 245.297 shares @ $38.01
Sold 05-23-2008 @ $43.93
Gain +$1452.12 plus dividends of $338.50= +$1790.62 (+19.20%/ annualized=+29.82%)
FSDPX: Materials
Bought 07-02-07 149.53 shares @ $55.73
Sold 05-23-2008 @ $62.42
Gain +$1000.43 plus dividends of $286.94= +$1286.94 (+15.44%/ annualized=+21.52%)
The Week in Review:
This will not stand! Of course this is a famous quote from most politicians when the American people are faced with an injustice of any kind. Higher energy prices are clearly a major injustice on the pocketbooks of millions of citizens.
In 2005, I wrote a Journal article entitled, "Where's Your Pain Threshold ?"
In the article I stated that oil prices will not peak until Americans begin screaming bloody murder, and consumers begin demonstrating against high energy prices.
I also said; I know you don't believe this will happen, after all, we are too civilized for this type of behavior. Oh, you think so ?
If gas prices creep into the $4.50-$5.50 range, the screaming will begin. The natives are already getting very restless.
Last Week:
DJIA: 12,479.63/ -507.17
S&P: 1375.95/ -49.42
NASDAQ: 2444.67/ -84.18
Higher energy prices, declining profits, and weak housing numbers weighed heavily on the markets.
For the week:
-Gold closed at $925.80/oz +25.90 for the week. Last week gold closed at $899.90, and was trading at $885.80 two weeks ago.
-The Commodities CRB Index closed at 431.09, up from 426.43 last week, and up from 427.48 two weeks ago.
-Crude Oil closed at $132.19 /bbl up from $126.04last week, and up from $125.96 two weeks ago..
We need to see $75-$85/ barrel oil in the weeks ahead to get the economy back on track. Oil has remained above $100 for the eleventh consecutive week.
In my opinion the US economy is in serious trouble.
-The U.S. Dollar closed at 71.96 down from 72.82 last week, and down from 73.05 two weeks ago.
The dollar has dropped to new all-time lows because of large account deficits, and rate cuts by the Fed. Some believe the rate cuts have come to an end, and the dollar is attempting to rally. A strong rally will help drive energy prices lower
Our current asset allocation is as follows;
70% Equities: (Normally 95%) Aggressive
60% Equities: (Normally 80%) Moderately Aggressive
50% Equities: (Normally 60%) Moderate
30% Equities: (Normally 40%) Moderately Conservative
10% Equities: (Normally 20%) Conservative
