This past week kicked off earnings season and all eyes were
focused on Alcoa (AA). Nobody really
cared about Alcoa’s numbers. We all wanted
to know what they had to say about their view of the global economy. If anyone was shocked that the picture they
painted was not rosy, then I would suggest that they haven’t been paying
attention. What did we expect them to
say with nothing but slowdown talk coming out of China?
Before the markets close, and about 30 minutes before Alcoa
reported earnings, I sent an alert out to my AFL Newsletter subscribers to let
them know I was taking the 10% gain on our Alcoa shares inside the AFL
Multi-Cap Value Folio. I bring this up
because those shares were purchased back in July after Alcoa’s last earnings
announcement. An announcement that was
not well received and created a buying opportunity. The markets quickly shook off Alcoa’s weak
outlook and ended up having a very strong third quarter. I think we will see the same thing this
quarter once the election is over. This
has been a consumer driven market and there is nothing more exciting than that
heading into a holiday shopping season.
Keep an eye out for my annual holiday trade post which will detail a
trade I have been using every year since 1999.
The numbers will surprise you!
S&P 500 Index
|
-2.19%
|
||
Asset Classes
|
Sectors
|
||
Domestic Large Cap Value
|
-1.93%
|
Technology
|
-3.39%
|
Domestic Mid Cap Value
|
-1.77%
|
Consumer Discretionary
|
-2.61%
|
Domestic Small Cap Value
|
-2.11%
|
Financials
|
-1.60%
|
Foreign Large Cap Value
|
-1.77%
|
Telecom
|
-2.68%
|
Foreign Small/Mid Value
|
-1.48%
|
Industrials
|
-2.01%
|
Domestic Large Cap Growth
|
-2.50%
|
Utilities
|
-1.07%
|
Domestic Mid Cap Growth
|
-2.31%
|
Natural Resources
|
-1.23%
|
Domestic Small Cap Growth
|
-2.41%
|
Real Estate
|
-0.67%
|
Foreign Large Cap Growth
|
-1.69%
|
Health Care
|
-2.49%
|
Diversified Emerg Markets
|
-0.97%
|
Energy
|
-0.78%
|
Gold & Precious Metals
|
-3.48%
|
Consumer Staples
|
-1.98%
|
Real Estate
|
-0.67%
|
||
Broad-Basket Commodities
|
-0.48%
|
||
Regions
|
|||
Europe Stock
|
-1.81%
|
||
China Region
|
-0.12%
|
||
Japan Stock
|
-2.69%
|
||
Latin America Stock
|
-0.70%
|
Jon R. Orcutt, founder of Allocation For Life, is an
asset allocation strategist and author of “Master the Markets with Mutual
Funds: A Common Sense Guide To Investing Success”; Manager/Creator of the AFL
Model Portfolios available for members of Allocation For Life in self-directed
accounts at Folio Investing
http://www.allocationforlife.com/
http://www.allocationforlife.com/
