The Everyday Finance Porfolio gained 6.7% for the prior week versus a 4% return for the S&P500. Given the relative high Beta and leveraged Financials/Gold ETFs in the portfolio, it isn't unexpected to see an improved return over the major indices. Attached below are the individual returns for each holding:
To highlight a few standouts:
- BIDU has been on a tear lately. I think the stock has been brutally beaten down for the best in class Chinese equivalent of Google. It's got real earnings and even greater growth potential than Google. With a 19% gain for the week, I think it's just getting started on its return to old highs.
- DGP, the 2X leveraged Gold ETF dropped 4% on the week. I've been long gold for quite some time now. I initially locked in profits on the 1:1 ETF GLD and traded it in for this turbocharged ETF. With another rate cut on track for April, I envision continued weakness in the US dollar and at least another foray into the $1,000 per ounce range again.
- UYG, the 2X leverage Financials ETF holds great promise. At the very lowest point in the Financials' index, I called the bottom (full rationale/analysis here) and went 2X long before virtually anyone had done so. Not to toot my own horn, but this week on CNBC, virtually every pundit and investor is now calling for a return to investing in Financials. This portends additional gains on top of the 12% return this week.
- VIP - Vimplecom, the Russian telecom is not for the faint of heart. I had more than doubled my money in it last year, sold some off and then saw decent declines. Now, it's returning to old highs again. I'm a holder, banking on continued growth in the standard of living and telecom growth in Russia due in great part of oil revenues in the post-$100 per barrel world.
No comments:
Post a Comment