8/26 newsletter
The market is still correcting with the pressure of oil hitting new high and housing market in doubt. Although new home sales still in all time high, the growth part is probably gone.
If your portfolio is tracking SP500 or small-cap, this month's 3% correction is bad enough to bring YTD yield to close to zero. But if it is tracking mid-cap, the 7% gain remains solid.
I find a good model to explain this year's market. Assume you only hold 3 stocks, COMMODITY is +30%, INDUSTRIAL is +0%, FINANCIAL is -10%. The average is +6%. If you lean on the right side, you got more, wrong side, less. Nobody knows how long the pressure from oil and interest rate will last...
--Steve
If your portfolio is tracking SP500 or small-cap, this month's 3% correction is bad enough to bring YTD yield to close to zero. But if it is tracking mid-cap, the 7% gain remains solid.
I find a good model to explain this year's market. Assume you only hold 3 stocks, COMMODITY is +30%, INDUSTRIAL is +0%, FINANCIAL is -10%. The average is +6%. If you lean on the right side, you got more, wrong side, less. Nobody knows how long the pressure from oil and interest rate will last...
--Steve
posted by Steve at 11:48 AM
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