AlphaProfit to Provide New Mutual Fund and ETF Recommendations on 09-30-10
The sector-based AlphaProfit Core and Focus model portfolios will be reconstituted on September 30 to include newly recommended Fidelity funds and ETFs.
The third quarter has shaped up to be a good one for stocks. A spirited rally in stock prices since the start of September has put broad U. S. stock market benchmarks in the black for 2010. Following a 11.9% in the third quarter, the S&P 500 is up 4.5% for the year.
Commenting on market movements, Dr. Sam Subramanian, Managing Principal of AlphaProfit Investments, LLC and Editor of AlphaProfit's Premium Service Investment Newsletters said, "The rally is supported by optimism that the U. S. economy will avoid a recession. Recent data from the housing industry have mitigated such concerns. Following a cascade of strong second quarter earnings reports, investors are pricing in the possibility that third quarter earnings can be equally good."
From a sector perspective, investments in the materials sector were leaders in the third quarter as a weakening U. S. dollar boosted prices of many commodities. Materials sector investments Materials Select Sector SPDR ETF (XLB) and Fidelity Select Materials Fund (FSDPX) gained 16.9% and 21.2%, respectively. Alcoa (AA), DuPont (DD) and Freeport-McMoRan Copper & Gold (FCX) are all up double-digits with Freeport surging 47.2%. The quest for income in a low-interest rate environment has uplifted dividend-yielding telecom stocks like AT&T (T) and Verizon (VZ).
Investments in the financial sector generally underperformed with Financial Select Sector SPDR ETF (XLF) and Fidelity Select Financial Services Fund (FIDSX) gaining just 4.9% and 4.5%, respectively in the third quarter. Bank of America (BAC), BB&T Corp. (BBT) and PNC Financial (PNC) have come under pressure on concerns that profits will be crimped by a flattening yield curve and falling real estate prices.
There were however pockets of strength even within the financial sector. Real estate investments for example fared quite well with Vanguard REIT ETF (VNQ) and Fidelity Real Estate Investment Fund (FRESX) gaining 13.5% and 13.0%, respectively.
While investor risk appetite is increasing as fears of another recession ease, Dr. Subramanian believes investors need to exercise caution. "While the economy may well avoid another recession, weak or slow growth is here to stay. Consumer spending remains constrained and employers remain reluctant to add to payrolls", says Dr. Subramanian.
Dr. Subramanian points out that growth in corporate profits has resulted primarily from productivity improvement rather than from revenue growth. He says, "Earnings growth will slow in the absence of meaningful growth in revenue, if further improvement in productivity is hard to squeeze in the near-term."
The Federal Reserve is taking a proactive role in lowering longer-term interest rates while maintaining short-term interest rates in the 0% to 0.25% range. While the Fed has signaled concern over deflation, the threat of inflation appears to be creeping up too and the wealth protection appeal of gold has found favor.
Since August 2009, the AlphaProfit Core and Focus model portfolios are up 22.4% and 23.9% respectively while the S&P 500 is up 14.9%. AlphaProfit's Premium Service is ranked #1 among all fund letters by Hulbert Financial. The AlphaProfit Core and Focus model portfolios will be repositioned with new recommendations on Thursday, September 30.
Looking ahead to the recommendation changes, Dr. Subramanian said, "Our top priority is to help readers minimize downside risk and build on recent gains in what is likely to be a slow growth environment. We intend to focus on quality and diversification. Rising investor risk appetite has caused higher quality stocks to become more attractive than lower quality ones. We will apply AlphaProfit's prescient ValuM investment process to select appropriate mix of sectors for the Core and Focus model portfolios."
Protect & grow your wealth with
investment recommendations from free e-letter
By Hulbert #1 rank winner Dr. Sam Subramanian
'Incisive Insights, Impressive Results' - Jim Woodruff
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
To inquire about AlphaProfit and its publications or to interview Sam Subramanian, please call (281) 565-6963 or send e-mail.
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.
This page is best viewed in 1024 by 768 pixels screen resolution or higher.
Copyright © 2010 AlphaProfit Investments, LLC. All rights reserved.