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Tuesday, May 28, 2013

Don Wolanchuk's Latest Timing Chart

Don Wolanchuk's Latest Timing Chart plots the share prices of the Fidelity Capital and Income Fund divided by the Vanguard Long-term Treasury Fund.
Message #82336 from da_cheif™ at 5/28/2013 12:52:44 PM
To: Kirk © who wrote (82335) 
this chart is a good one to a long way to go

I improved it a bit to go back to 1990

Make sure to check out these charts too:

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Saturday, May 18, 2013

Timer Digest Top 10 Timers Update

The most recent (May 13, 2013) issue of Timer Digest lists "Kirk Lindstrom's Investment Letter" as:
  • Tied for 1st in the "Top Ten Timers" - 6 Months
  • Tied for 6th in the "Top Ten Timers" - 1 YR
  • Tied for 2nd in the "Top Ten Long Term Timers" - (2 Yrs)
The "Featured Advisor" in this issue is James O. Rohrbach who writes "Investment Models, Inc." Timer Digest has been following "Investment Models, Inc." newsletter since August 2001.

Learn the "Core and Explore" approach to investing
with "Kirk Lindstrom's Investment Letter"
Subscribe NOW and get the May 2013 Issue for FREE!   
(Your 1 year, 12 issue subscription will start with next month's issue.)
Since December 2010, I have posted my Timing Signals on my web site for free and Timer Digest (TD) has tracked my signals.  I also send TD my monthly newsletter so they can see how I use a mixture of stock selection, asset allocation, technical analysis, fundamental analysis and market timing to manage "Kirk Lindstrom's Explore Portfolio."

For more about Timer Digest, see or call 800.356.2527

Monday, May 13, 2013

Markets at Record Highs, Will They Continue Higher?

Can the market keep going up without a major correction?  Are we at a major top? Here are excerpts from what others are saying:
"Despite the tremendous momentum in the market, there is still sufficient buying power to keep the current trend alive. And just as the crowd sets its collective mind on potentially disappointing economic data (as they did ahead of earnings season), a small string of positive economic surprises amid lower expectations could be very supportive of stocks in the coming months." 
Monday Morning Outlook, May 4, 2013
"Stock ownership among Americans is at a record low. Just 52% of adults say that they or their spouse own any stocks, either individually or through funds. That's according to Gallup, which began tracking this in 1998." 
CNNMoney, May 9, 2013
"We can argue all day long about whether quantitative easing policies from the world's central banks are doing much to help the economy. But this much is for darn sure: It is boosting a wide range of financial markets ... So, why are some of the people who you would think would be the biggest beneficiaries of this strategy so angry about it? That was the consistent tone among titans of the hedge fund industry at the Sohn Investment Conference conference [sic] Wednesday ... Zero interest rates from the Fed haven't sparked inflation; interest rates have fallen despite huge government deficits; and the stock market has risen steadily in the face of a still-weak economy ... it may just be more convenient to blame the (bearded) man behind the curtain as the master market manipulator than to own up to your mistakes." 
The Washington Post, May 9, 2013
"In 1995, the S&P 500 rose 14% from the beginning of that year through May 8. In 2013, it has also increased 14% year-to-date. Back then, the index never fell more than 3.7% in any given period throughout the year. A repeat performance would contradict the expectation that stocks are due for some sort of pullback." 
The Wall Street Journal "Morning MoneyBeat", May 10, 2013

"Despite the impressive market gains year-to-date, and key equity benchmarks -- including the S&P 500 Index (SPX - 1,633.70), Dow Jones Industrial Average (DJI - 15,118.49), Russell 2000 Index (RUT - 975.16) and S&P MidCap 400 Index (MID - 1,189.93) -- hitting all-time highs, we are still not getting the sense that being long equities is a crowded trade. Retail investors aren't even close to displaying the euphoria evident at the 2000 top. Moreover, as we've been noting over the past several months, hedge fund managers are far from over-exposed to equities, and can more easily rattle off why the market should head south as opposed to north -- despite the makings of what could be a huge year for stocks, like 1995, when the SPX closed higher by 34%.
- Don't Hold Your Breath for That Big S&P 500 Correction, May 13, 2013

"We surveyed banks, we combed the academic literature, we asked economists at central banks. It turns out that most of their models predict that we will enjoy historically high excess returns for the S&P 500 for the next five years."      -Federal Reserve Bank of New York Are Stocks Cheap? A Review of the Evidence", May 8, 2013
Here is a chart of the S&P500 for 1995:
My personal investment account gained 95% in 1995.  I bought my house in 1994 and had three loans outstanding at one time as I was trying to capture a major bottom in the housing market to lock in low property tax base in great neighborhood.  I liked stocks so much in 1994 that I refused to sell any to finance my new house.  

After I sold my old townhouse in early 1995, I used the funds to pay off two of the loans then used stock market gains to help pay  down the mortgage on my new home.  19 years later, I have very large capital gains on the home and get no sympathy from friends and family when I complain California and the federal government will "tax the heck" out of those gains if I want to downsize.
Key things I remember about 1995 is the housing market was making a major bottom in the 1994 to 1995 time period after the Savlings and Loan collapse.  The stock market LOVED the recovery in the housing market even though the economy did not feel like it was "booming" until many years later in 1999.

Here is a chart for 2013 YTD.  

Note that
  • The S&P500 is up 14.55% YTD, about what it was up in the middle of May 1995.
  • Housing in most areas of the country is up significantly over a year ago.
  • In some markets, like Los Altos and other cities on the San Francisco peninsula, housing is at record all-time highs.
What do you think? To get more of my thoughts and my advice on how to invest for the future, read my investment letter.

Learn the "Core and Explore" approach to investing
with "Kirk Lindstrom's Investment Letter"

Subscribe NOW and get the May 2013 Issue for FREE!  
(Your 1 year, 12 issue subscription will start with next month's issue.)

Monday, May 06, 2013

2013 I-Bond Rates: May 1 through Oct 31, 2013

From May 1, 2013 Announcement: The Bureau of the Public Debt today announced earnings rates for Series I Savings Bonds and Series EE Savings Bonds, issued from May 1, 2013 through October 31, 2013.

I bond fixed rates are determined each May 1 and November 1. Each fixed rate applies to all I-bonds issued in the six months following the rate determination.

The Current I Bond Composite Earnings Rate is 1.18% 
==> EverBank is a good alternative that currently pays a 1.25% "Bonus Rate" for the first 6 months on up to $50K. <==
The earnings rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the life of the bond, and the semiannual inflation rate. The 1.18% earnings rate for I bonds bought from from May 1, 2013 through October 31, 2013 will apply for the succeeding six months after the issue date.

The earnings rate combines a 0.00% fixed rate of return with the 1.18% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). The CPI-U increased 0.59% between October 2012 to and March 2013.

Fixed rate = 0.00%
6 month Inflation rate = 0.59%
Composite rate =[fixed rate + (2 x inflation rate) + (fixed rate x inflation rate)]
[ 0.0000 + (2 x 0.0059) + (0.0000 x 0.0059)] = 0.0118 = 1.18%

==> Top CD and Savings Account Rates:  <==
(Select your amount and account type to find the best rates)


For more information, see:
For older ibonds and what they will pay, see:

Disclaimer: I own Series I Bonds in my personal account.

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