I received an email from TraderPlanet offering me a free quarterly subscription to the TraderPlanet Journal. The issue available now starts with an article titled “Bill O’Neil Explains Why Growth Investing Still Works.” Bill O’Neil is owner and publisher of Investors Business Daily (IBD), author of several books, and inventor of the CANSLIM method of investing. You might want to subscribe at www.traderplanet.com/subscribe/.
Each Saturday afternoon IBD has a radio show (www.investors.com/radioshow/) and archives the show when it is completed. Over the next 3 Saturdays, celebrating their 100th radio show, they will have an interview with Bill O’Neil on investing. When you get the opportunity, please listen. You can also get the shows in ipod format. IBD has changed the Market Pulse Current Outlook to “Uptrend under pressure” due to the market results on Thursday. This translates to invest with caution, trent may be turning.
I was working with a tax client this week who was going to get 40k in capital gain with no other taxable income. He was surprised to lean there would be no tax on that gain. He was also surprised when I showed him if interest rates doubled, his bonds would lose 50% in value. He felt bonds were a risk free investment. It is true if you own individual bonds you will eventually get your money back (for what it’s worth) but if you own a fund, that is not true. At finance.yahoo.com take a look at the 6 months trend for TLT – the ishare barclays 20+ year treasury bond. It is only down about 10% over the last 6 months. Since it yields about 3%, owners lost 3+ years of interest with this decline. So much for risk free investments.
The sum of the deviations (997,899,874) is not up for the last two weeks – not time to invest.
The DJ Wilshire 5000 index is above its 50 day moving average and the average is increasing – time to invest. Both trends are not up – not time to invest.
My current investments:
SAutomotive has a price of $54.55, a sell price $52.05, a relative rank of 02, and is a hold.
SBiotechnology has a price of $178.72, a sell price $169.78, a relative rank of 01, and is a hold.
JapanSmallerCompanies has a price of $13.83, a sell price of $13.500, a relative rank of 03, and is a hold.
My portfolio changes this weekend:
IRA #1 – None
IRA #2 – None
My portfolio market exposure after this weekend’s changes
IRA #1 – 100% invested
IRA #2 – 60% invested