ETF/No Load Fund Tracker StatSheet
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Friday, April 29, 2011
While investors started the week out being a little edgy about the 2-day Fed meeting on Tuesday and Wednesday, the Fed stayed the course in regards to interest rates. The economy is still too weak to start raising rates from these record low levels, according to chairman Bernanke. While the Fed admitted that inflation is rising, the longer-term trends are considered stable.
The central bank also agreed to continue with its Quantitative Easing 2 (QE-2) until the end of June, as scheduled, while a third round of easing is not on the drawing board. All that was music to
the bulls, and higher we went despite temporary pullbacks.
While equities surged ahead and turned in the best month for 2011, the precious metals took top billing and raced to record highs. To me, that’s clearly a sign that all is not well in this economic wonderland. I am sure that there will be a yet unknown price to pay for the present and past stimulation efforts.
Be that as it may, for this month, all major indexes rallied nicely with the Dow, Nasdaq and S&P 500 gaining 4%, 3.3% and 2.8% respectively. Because of the gains in precious metals, our core holding in PRPFX fared extremely well by adding +4.58%.
Our Trend Tracking Indexes (TTIs) followed market direction and headed deeper into bullish territory. As of today, they have moved above their trend lines by the following percentages:
Domestic TTTI: +5.98% (last week +4.79%)
International TTI: +7.10% (last week +5.71%)
Economic news were pretty neutral as personal income rose slightly in March, while this week’s readings on manufacturing activity dipped and consumer sentiment slipped as well.
Next week, we’ll be facing a host of economic reports including construction spending, auto sales, factory orders, initial claims and productivity, with the highlight being next Friday’s unemployment rate.
It will be interesting to see if market momentum will continue to favor the bulls in May, or if the bears finally start to show some life.
Have a great week.
READER Q & A FOR THE WEEK
All Reader Q & A’s are listed at our web site!
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A note from reader John:
Q: I enjoy reading your ETF on the Cutline reports. Someone sent me info on a new ETF (HDV) and WHX-high dividend trust. Any thoughts?
A: John: HDV is too new to make any assessments, and WHX hovers below its long-term trend line making this a bearish scenario.
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