I want to apologize for the tardiness and brevity of comments, but I am traveling. I will be meeting with the CEO and CFO of KBALB tomorrow. This week was another very challenging one, with all of the models lagging the benchmarks. Further, the market has taken out levels that I had hoped would hold and is as illiquid as it has been in a year. Here is the performance update:
Top 20 continues to see severe pressure on two fronts, with our very small holdings suffering from poor liquidity and some of our turnarounds being abandoned. For the week, our YTD performance relative to the market worsened by 1.6%, and we are now lagging the market by almost 2% with a flat return. CG/B had a tough week too, with the YTD advantage whittled to .3% from .6%. The new ETF model, Sector Selector, saw its since-inception relative return move down about 0.2%.
Market Outlook
My bullish thesis for this year is certainly looking less likely, but I haven't yet revised my outlook. We will need to reverse this June weakness very quickly, and perhaps this week, with its quadruple witching day on Friday, will fall into the time-frame. I am fearful that a little more weakness could induce some panic selling in the near-term otherwise.
Articles
- 14 Stocks Holding In: TradeKing
- Microcap ETF: Seeking Alpha
Over the next few days, I intend to substitute at least one new name for one of our challenged names in Top 20. I may also have to move to get more defensive in CG/B.
Regards,
Alan Brochstein
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