Day 63: Up $24,560 in 2 Months

The Mother's Little Helper portfolio was up today +(0.67%) for a GAIN of +4,163.27. Overall GAIN: +$24,560.55 (+4.06%). 82 stocks in the black, 39 still in the red. When this project began the objective was to see if an average investor could produce above average results. Like the ad on TV reminds us, I should have included a benchmark for average. The S&P 500 is probably the best benchmark to compare the MLH portfolio against, so by that measure MLH is below average. As of the close today the S&P 500 is up 4.96%, while MLH is up 4.06%. I'm not disappointed, this is a pretty darn great return for a portfolio that is barely two months old. Today healthcare got a boost, I think mostly f

Day 43: Buy Bond Market Equivalents

The Mother's Little Helper portfolio was up today (0.77%) +$4,721.10 for an overall gain of +$17,248.03 (+2.86%). Mom is very happy. You know the old saying, "The days are long but the years are short". I don't think this has held true for the bond market. It's been a really long decade of a bull market in bonds. A combination of low inflation, low interest rates and fear have kept the bond market on a tear for the last decade but now the cracks in the dam are beginning to show. My metaphor isn't a reference to the Oroville dam, though that is front of brain for many in California. My point is that there are alternatives to investing in bonds and those alternatives are most likely a lo

Day 38: Earning & Inflows, Not Trump

The portfolio was UP (0.23%) for a gain of +1,379.58 Overall GAIN to date stands at: +$9,348.86 (+1.55%) I see a 6% upside in the S&P 500 by the end of the year. Today the S&P closed out at a new high of 2316.10, a 6% gain over the year would have the S&P 500 at 2,455 in December 2017. How do we get there? Guess what it's not Trump. The more I try to filter all the noise, the more I hear lots and lots of noise surrounding a "Hope Trade". Hope has never been a good planning strategy so I just can't go there. I believe it's all about earnings and inflows from the bond market. The chart below shows the US 10-year for the past 10 years with upper and lower price channel lines added in; ju

Day 36: Feds $4.5 Trillion is Permanent

The portfolio was down slightly today (-0.40%) for a LOSS of -$2,446.22 on the day. The overall portfolio GAIN to date stands at +$2,737.81 (+0.45%). Once again we're having a renewed discussion about deficits in Washington. Maybe that isn't the single most important topic that you pull out of the daily news, I know Ivanka having her line removed from Nordstrom's was a biggie, but from a high level that's what I keep hearing. My brain is simple and needs simple words, so let me see if I have this straight. Basically the discussion goes like this; "If we're really smart and think more like business people we can reduce the deficit and get the Fed to reduce it's balance sheet". That Fed

Day 34: Yellen has a tell

Apple and Facebook both posted a blow out earnings reports, oil closed higher bringing oil and pipeline stocks up and Janet Yellen left interest rates alone today. Let's see what March brings. Is it just me or does Yellen have a tell? I'm not a serious poker player, but it seems like she talks real hawkish about raising rates when she doesn't, and talks real dovish about rates when she does. Given todays speech I'm guessing she doesn't raise in March. She certainly delivers uncertainty with certain behaviors. The problem right now with leaving rates low is she is signalling that the economy may not be all that great, when there is significant evidence to the contrary. Well, as long as

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This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice.
This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities.

© 2016 by Clay Baker all rights reserved