Posted
Jul 21 2008, 09:47 AM
by
Vinny Catalano, CFA
excerpts from this week’s report:
Model Growth Portfolio (MGP)
“Wow. A fantastic week as the strong underweight in Energy
finally paid big dividends most of the relative performance gains at 63 basis
points. Combined with a modest 13 basis points and no major negatives produced
one of the best weekly performance for the MGP (+114 basis points) in its three
year history…”
ETF Market Monitor
Economic Sectors & Industries: “The
collapse in Energy along with satisfactory results from key financial
institutions generated a role reversal, at least for one week.
Size & Styles: Small caps,
particularly Small Cap Value, Micro Cap, and Transports all had a stellar week.
Global: Most global markets did not join the
US parade. Energy sensitive countries such as Canada and Brazil faltered.
Other: Along with Oil, Commodities were
sharply lower.”
Expected Return Valuation Model
“The rise in the 10 year yield this past week coupled with
the modest increase in equity levels reduced the severe undervalued readings.
Nevertheless, stocks remain substantially undervalued. (It is also worth noting
that the VIX dropped below 25, thereby justifying, for the moment, maintaining
the 100 to 120 basis point risk premium – yellow zone.)…”
Moving Averages Scorecard
“Last week’s rally produced some relief for most indices as
their near term direction improved. Most notable were the step up from extended
(on the downside) to Intact for Consumer Discretionary, Financials,
Industrials, Mega Cap, and Large Cap…”
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