March 15, 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): 3M +1.13.
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 + 169%
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 $1,652,164.76, gain 217.65%
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
$1,070,737.60 (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%
The Dow Jones Industrial Average posted its largest loss of the year on March 6. Since then it has posted seven consecutive days of gains. Days like March 6 lead to media hype and overreaction. Trends like the past seven days allow for media complacency to grow. Exceptions are touted as the rule (see Apple, AAPL, whose price moves were looking parabolic at today’s open).
Though both short and long term price convergences continue, the market has a long way to go before prices normalize. The path to normalization will not be straight, nor will it be void of volatility.
This portfolio is not positioned to make any adjustments, but will remain flexible in the case of either short term strength or weakness.