Thursday, June 4, 2009

Some returns to ponder

Let's look at some 13 week returns:

DJIA 31%
NASDAQ 39%
Russell 46%
S&P 500 36%
S&P Midcap 400 42%

Now lets look at some Foreign index returns the last 13 weeks:

Bombay Sensex 77%
Malaysia 31%
Bel20 Brussels 32%
CAC 40 TR Eur 34%
DAX TR Eur 37%
MSCI Hong Kong 52%
MSCI AC World Usd 42%
MSCI Latin America 66%
MSCI Japan 32%
MSCI Pacific ex Japan 60%

Now let's look at some Morningstar bond index YTD returns:

Intermediate US Govt Bonds -3%
Long Term US Govt Bonds -11%
US Govt Bond -4%

Pension rebalancing anyone?

Bear market bounce? Who is kidding who?

It's the bull market of the beast. The generational low market. The biggest market you will ever see in your lifetime.

And this is it's start for the past 13 weeks.

And you still have people preaching doom.

Here's their next story.

The state budgets, and state shortfalls.

Be prepared.

It's just another bears' desperate shill, that is getting shriller!

3 comments:

Anonymous said...

i moved 80% of my 401k into govt bonds....do you think i should move most of it back into stocks again?

thanks

Palmoni said...

I don't like long term bonds, but short term bonds are a good cash equivalent.

Everybody has a different risk tolerance. As you can tell, mine is probably higher than most!

As an idea, look at the stocks that just raised cash. MGM, BAC and JBLU. These are three speculative picks, that I feel have a lot of risk already priced out.

Wall Street bears may say otherwise.

I think all three could double. If you put 10% of your portfolio in these numbers, you could boost your portfolio 10%,while you keep 80% in cash, and find the other 10% to put elsewhere.

That's just an example, and not "investment" advice-but an example of the opportunities that I think are available right now.

You don't have to use a lot of money to make money in this market.

I like the "mad money" concept. I trade to make money, have fun, and for the intellectual stimulation.

But the most important thing, is your risk tolerance. I think most people's risk tolerance is much lower than they envision.

So I try and be much more careful and selective in timing. That way you can increase your returns, without laying out more cash to do it.

Which Wall Street says you can't do.

I beg to differ.

Anonymous said...

thanks....when you say long term i assume you mean 20 and 30yr bonds?

i like the jblu call. my timing is off right now as i've been eyeing it the last two days but haven't pulled the trigger.