Saturday, November 6, 2010

Market Timing Signal 11/06/2010

The markets are now trading near their 11 year highs as of Friday. Market conditions are ripe for a dip in the market. The market may not drop next week but it is my belief that it will trade lower at some time over the next three months than it is trading at this time. The Federal Reserve is beginning to print money. This could lead to inflation which could really kill this recovery. Don’t get me wrong I think the market has room to run up and will for some time as conditions are still bullish. At this point I am taking profits and will wait for the next dip to buy back into the market. Over the past two years I was of the opinion that US small caps were the best asset class and my favorite fund Royce Low Price Stock fund RYLPX has done very well. When the next buying opportunity strikes I will make my recommendations at that time.

The 2010 portfolio continues to make money.

Fund picks for 2010

October was another great month to be in the market. as of this writing the S&P 500 up about 11 percent for the year. The S&P 500 actually outperformed the 2010 portfolio for the month of October but the 2010 has a nice lead on the market. The 2010 portfolio is up over 19% for the year. All of the funds have nice returns. The only stock fund lagging the market is the Yacktman Focus Fund which is only up 10 % for the year. The Gabelli Gold Fund is up a handsome 36.5% for the year. Coming soon is my 2011 portfolio which will feature some changes from the 2010 portfolio

Fund picks for 2010