Saturday, October 13, 2012

Week Ending 10/12/12 S&P 500, Asset Class & Sector Performance

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
Asset Classes
Domestic Large Cap Value
Domestic Mid Cap Value
Consumer Discretionary
Domestic Small Cap Value
Foreign Large Cap Value
Foreign Small/Mid Value
Domestic Large Cap Growth
Domestic Mid Cap Growth
Natural Resources
Domestic Small Cap Growth
Real Estate
Foreign Large Cap Growth
Health Care
Diversified Emerg Markets
Gold & Precious Metals
Consumer Staples
Real Estate
Broad-Basket Commodities
Europe Stock
China Region
Japan Stock
Latin America Stock


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