SYNOPSIS
All of the major indexes that we track were to the upside last week, with the S&P/TSX Small Cap Index showing a surprisingly large gain of 2.7% on a one-week basis. Trend-wise, the major US indexes are still showing a distinct advantage over Canadian equities in general.
ProfiTrend Portfolio… Our PTP annualized growth rate has increased to 153%, well ahead of the comparable stats for the S&P 500 (34%) and the S&P/TSX Composite Index (23%). We sold two positions last week, and added five new ones.
Investor Confidence… The latest State Street Investor Confidence data are included for the month of May 2014. The “smart money” continues to ignore geopolitical issues… treating them as the media-created fantasies that they are. Institutional investors recognize that riskier equities are still a better place to be than bonds and other “risk-free” assets. This is actually most pronounced right now with European investments in equities rather than North American or Asian.
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In October 2012 I published a TrendWatch Weekly update called “The Weekend Warrior Approach to Trading”. The goal was to outline how you can have a highly effective do-it-yourself investment strategy based on spending an hour or two each weekend to track your portfolio and decide what you will buy or sell next. This week I revisit that topic, not with a simple reprint of the previous contents, but with a whole new presentation that includes highlights from the previous version, plus some new tactics and suggestions.
Seasonality… We review some of the calendar effects for June, and then let Brooke Thackray present his version through his monthly videos.
Featured Video… We have an optimist interviewed on this weeks featured video… Wharton Business School professor Jeremy Siegel. He explains why stocks are actually under-valued right now, contrary to the opinions of most other talking heads.