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AlphaProfit Newsletter: December Indicator Update and Repositioning Schedule
December 3, 2007
Dear Valued Subscriber,
The AlphaProfit model portfolio returns as of November 30, 2007 are as follows:
| Nov. 2007 | 2HTD* | YTD** | 1 Year | 3 Year | Sep. 2003 Inception | |
| AlphaProfit Focus™ Model Portfolio | -8.6% | -2.4% | 7.6% | 6.6% | 69.6% | 128.8% |
| AlphaProfit Core™ Model Portfolio | -6.5% | 2.5% | 9.8% | 10.9% | 54.3% | 90.1% |
| DJ Wilshire 5000 Total Market Index | -4.5% | -1.1% | 6.4% | 7.6% | 35.8% | 65.9% |
* 2HTD refers to the June 30, 2007 to November 30, 2007 period.
** YTD refers to the December 31, 2006 to November 30, 2007 period.
November was a tough month for investors. Fears of a slowdown in consumer spending resulting in a recession led stock prices to decline sharply for most of the month. Turning lower from the get-go, the slide gained momentum as negative developments at leading financial institutions hit the headlines. Stock prices reached their low point for the month intra-day on November 26 when the Dow Jones Wilshire 5000 index was lower by 9.4%.
Comments from Federal Reserve officials during the final week of the month raised expectations for a cut in short-term interest rates. The DJW 5000 recouped some of its losses to end the month lower by 4.5%.Mid-cap and small-cap stocks suffered more with the Russell 2000 index losing 7.3%.
From a sector perspective, shares in the financial sector were hard hit. Technology and consumer discretionary shares joined the decline for good measure. The broad decline did not spare even gold, materials, or energy.
After outperforming the DJW 5000 index for two months in a row, both AlphaProfit model portfolios underperformed the benchmark in November.
Year-end Model Portfolio Repositioning
The Core and Focus model portfolios will be repositioned after the markets close on December 31. To help you closely track the model portfolios, we will publish the Repositioning Alert Preview by 12:00 p.m. Central Time on Monday, December 31 in the Subscriber Login area. We will follow this with the Repositioning Alert Confirmation by 3:00 p.m. Central Time on Tuesday, January 1. The Repositioning Alert Preview and Confirmation documents will be e-mailed to you when they are published on the web site.
Maintaining AlphaProfit Sector Portfolio Indicator at 'Buy'
Equity prices are likely to continue receiving some support from expectations of an interest rate cut prior to the Federal Reserve's Open Market Committee meeting on December 11. Additionally, the holiday shopping season appears to be off to a decent start despite fears of a credit crunch. We believe the rally from the last week of November will likely continue into December.
We maintain the AlphaProfit Sector Portfolio Indicator
reading at 'Buy'. Presently, we are not making any changes to the model portfolios. The model portfolio compositions as well as exchange traded fund (ETF) and mutual fund recommendations are available in the Subscriber Login area of the web site. With less than 30 days to go for the scheduled repositioning of the model portfolios, Subscribers starting out or seeking to add to existing positions should note that Fidelity charges a 0.75% short-term redemption fee on Select fund investments held less than 30 days.
Factors driving performance of recommended sectors and industry groups and their investment outlook will be discussed in the December Report due for publication on the 12th.
We welcome your comments.
Best regards,
Sam Subramanian
AlphaProfit Investments, LLC
Ideas. Insights. Results.
http://www.alphaprofit.com
Notes: The AlphaProfit Sector Investors' Newsletter™ is for information purposes only. AlphaProfit Investments, LLC is not soliciting any subscriber to buy or sell any security. Nothing herein should be construed as an offer to buy or sell securities or to give individual advice on investing. Before buying or selling any mutual fund, exchange-traded fund, security, or investment, read the prospectus carefully. For securities held in brokerage accounts, read the broker's specific terms and conditions which apply to trading of the securities. AlphaProfit Investments, LLC cannot and does not give any assurance that the present or future model portfolio changes will be profitable. Past performance is not a guarantee for future results. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. AlphaProfit Investments, LLC is not responsible for any errors or omissions. AlphaProfit Investments, LLC neither is associated with nor receives any compensation from any of the mutual fund companies, brokers or entities connected with the exchange-traded funds mentioned in the newsletter. Please review our Terms and Conditions of Use and Subscriber Agreement which is available on our website at www.alphaprofit.com; they govern your relationship with AlphaProfit Investments, LLC, including, but not by way of limitation, use of this newsletter. No part of the AlphaProfit Information may be reproduced or re-transmitted in any manner without written permission of AlphaProfit Investments, LLC.
Copyright © 2007. AlphaProfit Investments, LLC. All rights reserved.