Market Commentary
08/04/2009
--- Twelve of Thirteen Portfolios Beating S&P 500 in
2009 -- Speculative Spin-Offs Leading The Way With +54.4%
Year-To-Date Gain
Our Speculative
Spin-Offs and our Value
Stock Portfolio are leading the way so far in 2009 with
gains of +54.3% and +29.3% respectively. In comparison,
the S&P 500 has risen only 11.3%.
| Portfolio |
Return Jan.
to Aug. '09 |
|
***
Economic indicators continue
to improve. Housing prices showed their first month-to-month
increase in three years. Orders for durable goods have also
improved.
On a larger scale, GDP continues
to show signs of improvement. In the fourth quarter of 2008,
the Gross Domestic Product (GDP) contracted at an annual
rate of -6.4%. In the first quarter of 2009, that contraction
improved to -5.4%. In the latest quarter, it improved substantially
to -1.0%.
It is our belief that GDP
will be either flat or positive for the current quarter,
meaning the end of the recession is likely near. Improvements
in unemployment, usually a lagging indicator, will be the
final proof that the economy has bottomed.
