Performance Update September 2009
Heading into 3rd quarter earnings season, September 2009 brings some great news for investors. The market rally is now 7 months long with an increase in the S&P 500 Index of approximately 3.9% over August 31. The question everyone is asking now is, when will the DOW hit 10,000?
The Capital Abundance portfolio also performed well in September, as compared to the market, especially considering that the portfolio is currently 80% fixed income. We trailed the market by only 1% for a September return of 2.9%. Every holding in the portfolio increased in value, with the star performer being Gentiva Health Services (GTIV) common stock. GTIV increased 13%, or almost $400, in September.
The question entering the 4th quarter is how long will the rally last? The main driver will be corporate earnings. If earnings reports are positive, I think we will continue to see a rally through year end. Poor earnings reports will most likely lead to a stagnant 3rd quarter as investors will sit on the sidelines for confirmation in Q1 2010 as to where the economy is heading.
Let’s all hope we see good earnings and a DOW 10,000!
| Average Annual Portfolio Returns as of September 30, 2009 | ||||
| periods less than 1 year are not annualized | ||||
| inception date: September 3, 2008 | ||||
| Q3 2009 | YTD | 1 Year | From Inception | |
| Capital Abundance | 1.8% | -2.2% | -5.5% | -5.3% |
| S&P 500 Index | 15.6% | 18.1% | -7.7% | -12.9% |
| Portfolio Holdings | ||
| As of September 30, 2009 | ||
| Security | Quantity | Value |
| San Diego, CA Muni CUSIP 79730PBK0 | 10 | $10,069.10 |
| Certificate Accrual Treasury, CUSIP 165883NF3 | 3 | $2,939.13 |
| Treasury Note, CUSIP 912828KA7 | 2 | $2,002.04 |
| Treasury Note, CUSIP 912828KB5 | 4 | $4,000.00 |
| CIT Bank CD, CUSIP 17284P3D5 | 2 | $2,020.24 |
| Monarch Bank CD, CUSIP 60902NCE0 | 2 | $2,001.14 |
| Fannie Mae Zero Coupon Bonds, CUSIP 31358ABT6 | 3 | $2,989.56 |
| Gentiva Health Services, Inc. Common Stock (GTIV) | 127 | $3,176.27 |
| MFA Financial, Inc. Common Stock (MFA) | 375 | $2,985.00 |
| Cash | $32.77 | |
| $32,215.25 | ||
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