Dynamic Growth: ETF Portfolio

Here are our Top 10 ETF's for the week of June 2nd:

1) EWZ: Brazil Index- .455
2) EEB: Claymore ETF BNY BRIC- .419
3) SLX: Market Vectors Steel Index Fund- .447
4) DBA: Powershares DB Agriculture Fund- .374
5) FXF: Currency Shares Swiss Franc Trust- .449
6) ADRE: BLDRS Emerging Markets 50 ADS Index Fund- .323
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

Fidelity Sector Fund Portfolio:

NEW BUYS:

FCYIX: Industrials
FSVLX: Home Finance

NEW SELLS:

Here are our Top 10 Fidelity Sector Funds for June 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) FCYIX: Industrials
9) FSRBX: Banking
10) FSVLX: Home Finance

Honorable Mention (Holds):

None

Notes:

As I promised a few weeks ago, I am adding a deep value play by adding the Fidelity Select Home Finance (FSVLX) sector fund.

The FSVLX fund has been ax murdered and left for dead. After hitting an all-time high of $69.72 in 2004, the shares have dropped 65% or -$45.24. I am not sure if this is "the bottom", but history shows that home finance will continue to be something most consumers still need in the months and years ahead.

Here are the top holdings;

Fidelity Select Home Finance (FSVLX)

FANNIE MAE
FREDDIE MAC
COUNTRYWIDE
ANNALY CAPITAL
HUDSON CITY BNCP
NEW YORK CMMTY BANK
CHIMERA INVESTMENT
WASHINGTON MUTUAL
PEOPLE'S UNITED FINL
WELLS FARGO & CO

Our other new addition is the Fidelity Select Industrials- FCYIX. The fund is not a deep value play, but has been creeping up in our strength ratings.

Here are the top holdings for the fund;

Fidelity Select Industrials (FCYIX)

GEN ELECTRIC
UNITED TECH
HONEYWELL
LOCKHEED MARTIN
BOEING
DANAHER
FEDEX CORP
BRINKS COMPANY
SIEMENS A G ADR
SULZER GEBRUEDER A G

The Week in Review:

Don't be fooled by the morons on TV that keep telling you the US is not in recession. They are dead wrong.

The good news is by time they declare the "official recession", we will be close to the end of it. I am of the opinion that an economic rebound will occur more slowly than in past recessions, but if, as, and when, oil prices begin to decline, economic activity will begin to rebound.

I believe the next 6 months will bring lower energy prices which will surprise everyone on Wall Street; but it won't surprise us!

How do I know this will happen? I don't for sure, but why would the powers that control us want to bite the hand that feeds them?

Higher and higher energy prices will reduce demand for the products that the "powers" want us to buy. They cannot continue getting rich if consumers don't have the cash to buy their products.

Voters, consumers, citizens spend money when their happy. Most families must have new cell phones, video games, wide screen flat panel tv's, new cars, and enough money to go out an eat. Give consumers what they want, and their moods change dramatically. This is what lower energy prices will do to the economy over the next 6 months.

All of these things have a way of coming true going into a presidential election. I am betting this time will be no different.

After the election??? Now that's a different story.

Last Week:

Last week was a gloomy one for investors;

DJIA
-507.17
-3.91%

DJ Transports
-223.82
-4.17%

S&P
-49.42
-3.47%

NASDAQ
-84.18
-3.33%