Posted
Jul 07 2008, 10:40 AM
by
Vinny Catalano, CFA
excerpts from this week’s
report:
Model Growth Portfolio
(MGP)
“Not even the strong underweight in Energy (producing a positive 28 basis
points could offset the combination of poor results in the size & styles
and global markets plus the occasional pricing distortion between the S&P
500 (-1.21%) and the economic sectors (-1.67%)…”
Model Growth Portfolio
(MGP) Re-balancing
“No
position changes are being recommended at this time...”
ETF Market Monitor
Econ.
Sectors & Inds.: The
strong performers were finally hit big with Steel the biggest weekly loser
tracked followed by Homebuilders. Biotech stood out on the plus side.
Size
& Styles: The
same story, strong giving way, was evident in this grouping as the Smids
declined dramatically.
Global:
Heavy losses across the
entire spectrum (except the UK, which came off a very low prior week ending
number).
Other: Gold and Commodities produced solid
weekly results.
Expected Return Valuation
Model
“One the significant values in running a valuation model is
that it forces you into challenging the assumptions built into the model. In
the case of the ERVM, some of the issues that must be resolved us whether
projected operating earnings are accurate? In this regard, the much more
conservative number reached via a top down scenario method does not appear to
be out of line, especially when compared to the bottom up numbers forecast by…”
Moving Averages
Scorecard
“Most of the damage was done in the prior week with last
week’s action merely producing some near term deteriorating but no changes in
the mega trends. Basic Materials, a market leader for several years, gave up
considerable ground these past few weeks but has not produced a mega trend change
thus far, as the following chart shows…”
To learn about "Sectors and Styles Strategy Report" newsletter and other subscriber benefits, click here.
To view this month's free sample "Sectors and Styles Strategy Report" sample, click here.