As of November 28th I am pleased to report that although the Market Flavor stock portfolio is down this year, it’s currently 7 basis points ABOVE the S&P 500, which equates to 12.31%. The main goal of the Market Flavor portfolio is to outperform the S&P 500 by investing in quality well priced stocks, which I have done successfully since the start of the Market Flavor portfolio.

Click here to view the current Market Flavor portfolio.

Due to the current economic conditions the portfolio is still very conservative with almost 28% in cash and 6% in the ultra short NASDAQ ETF (QID). However, as the economy is clearly in the tank, I believe that a lot of the upcoming bad economic news is already priced in the stocks market. Job losses should get worse by the end of the year along with a horrible season for Christmas sales. I think we’ll see a large percentage decline in economic numbers for the forth quarter which I expect will start getting better in 2009. I think most economic numbers will still be negative for most of 2009 but I’m expecting the percentage declines to be less.

With this in mind I plan on moving out of the defensive positions in the portfolio, but slowly as I don’t believe we are at the bottom of the market yet. Doing this will probably hurt the portfolio in the short term but it should set the portfolio up for a great recovery as the economy and stock market start to recover.

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Tags:   Stock Market Outlook   Stock Picks Performance  

Posted on November 28, 2008 3:48 PM | Digg | del.icio.us