March 13, 2012
Daily commentary, current portfolio structure and history follow.
Please direct questions and comments to:
Drach Market Research
2910 Kerry Forest Parkway D4-210
Tallahassee FL 32309
Tel. (850) 576-2680
E Mail DrachMkt@aol.com
Position Changes: None.
Major movements (+ or – one point or more among holdings): Atlantic Tele Network +1.12, Harley Davidson +1.25, 3M +1.21, United Technologies +2.58.
Basic Summary (positions itemized after daily commentary)
Relative performance (market to market) vs. S&P 500 since initiation
This Portfolio Model + 217%
S&P 500 + 168%
Portfolio model initiated 5/5/95, archived and marked to market daily.
Initial S&P 500 level 520.12. Initial portfolio value $520,120.00
Current portfolio value $1,649,753.47, gain 217.19%
These results are reflective as to capital capture and market price of current holdings, itemized below. They do not include cash dividends, interest earned on cash balances, transaction costs, or anything else.
Current Stock vs. Cash Allocation
$1,068,326.31 (64%) stock. $581,427.16 (36%) cash equivalents.
Summary of Closed Positions
Total Positions 459 Average Position
Profit 413 (89.97%) Percentage + 7.19%
Loss 46 (10.03%) Days Held 220
Even 0 ( 0%) Annualized + 11.93%
Strongest day of the year for the major averages. Stocks have now posted their strongest and weakest days within one week. A sign that volatility could be creeping back into equities after a very quiet start to 2012.
The Fed’s announcement that it will maintain an accommodative approach to monetary policy through late 2014 does not come as a surprise, though it continues to perturb some market watchers. This portfolio does not mind and anticipates riding a wave of mixed inflation/growth, which will most likely benefit stocks the most among asset classes.
If recent strength continues, this portfolio will be attuned to selling positions, but could also add positions in the face of market weakness.