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AlphaProfit to Provide New Recommendations on 08-18-10

The AlphaProfit No-Transaction-Fee (NTF) Growth model portfolio will be reconstituted on August 18 to include newly recommended best-of-breed no-load domestic, foreign, and specialty mutual funds.

Fears of a second dip in the U. S. economy are running high as the calendar marks the mid-point of the third quarter. Dipping below the flat line again, the SPDR S&P 500 ETF (SPY), that tracks the popular S&P 500 benchmark ($SPX), is now down 2% for the year.

From a style perspective, value has held up better than growth and from a capitalization perspective, mid-caps have fared better than both small and large caps. The iShares Russell Midcap Value Index ETF (IWS) and SPDR Dow Jones Midcap Value ETF (EMV) have fared better gaining nearly 3% each.

Large-cap growth stocks have lagged the most. iShares Russell Top 200 Growth Index ETF (IWY) and SPDR Dow Jones Large Cap Growth ETF (ELG) are both down around 4% to 5%.

Many developed foreign markets are deeper in the red. The iShares MSCI EAFE Index ETF (EFA) commonly used to invest in a basket of developed foreign markets is down nearly 7%. Emerging markets have fared a tad better than the U. S. market. The popular iShares MSCI Emerging Markets Index ETF (EEM) is down just over 1%.

Commenting on the market environment Dr. Sam Subramanian, Managing Principal of AlphaProfit Investments, LLC and Editor of AlphaProfit Premium Service Newsletters said, “Following July’s sharp rebound, stock prices are down across the board. Relatively robust corporate second quarter earnings reports have not been enough to sustain investor interest as concerns on the direction of the economy have returned to the forefront.”

Measures of manufacturing, housing, and retailing activity indicate that economic growth is slowing. The rate of job creation too is discouragingly poor. Investors are concerned that the softness may be enough to tip this jobless recovery into reverse gear.

Outperforming the domestic and foreign benchmarks, the AlphaProfit sector-based Core and Focus model portfolios and the best-of-breed funds based no-transaction fee (NTF) Growth portfolio are all up single-digits. The latter portfolio will be repositioned on August 18 to include new recommendations.

Discussing upcoming investment recommendation changes, Dr. Subramanian remarked, “AlphaProfit's sector and investment style-based recommendations have worked to our readers’ advantage. In the past year, the NTF Growth portfolio has benefited from market beating returns delivered by funds like Janus Overseas (JAOSX) and Yacktman (YACKX). Our focus now is to help readers protect and build on these gains.”

“While this is not a time to throw caution to the wind, this is not a time to run for the hills either.” Dr. Subramanian added. Second quarter earnings reports have been exceptional. According to Zacks, over 75% of reporting firms have beaten analysts’ earnings expectations and nearly 59% of them have beaten revenue forecasts. Companies from a range of sectors like JPMorgan Chase (JPM), Intel (INTC), Pfizer (PFE), Disney (DIS) and General Electric (GE) have reported strong double-digit upside EPS surprises. Furthermore, global economic bellwethers FedEx (FDX) and United Parcel Service (UPS) have encouragingly raised earnings forecasts.

Dr. Subramanian concluded, “The market may have further to go on the downside in the coming weeks. This decline can however set the stage for a rebound later this year particularly if the Federal Reserve’s recently announced strategy of lowering intermediate-term bond yields by reinvesting principal payments from agency debt and mortgage backed securities helps to avoid another recession.”


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About AlphaProfit
AlphaProfit Investments, LLC is an independent investment research firm based in Sugar Land, TX. AlphaProfit publishes the AlphaProfit Sector Investor's Newsletter, edited by Dr. Sam Subramanian. Leveraging sector funds, the Newsletter provides high-performance model portfolios with Fidelity funds and exchange-traded funds. It also includes actionable stock recommendations. This newsletter features among MarketWatch's top 10 investment newsletters and has won the coveted #1 rank from Hulbert Financial several times.

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This press release is for information purposes only. Nothing herein should be construed as an offer to buy or sell securities or to give individual advice on investing. 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 investment companies, brokers or entities connected with the securities mentioned herein. 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 the AlphaProfit MoneyMatters.

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