12/27/2012 Rotation: selling EL; buying OKE

Small Portfolio	XLF & IAU	16.50%
Sector	XLF	25.08%
Secular	IAU	7.93%
Large Portfolio	Date	Return	Days
RIMM	7/16/2012	62.21%	164
SEAC	9/25/2012	17.38%	93
CAJ	9/25/2012	12.12%	93
DDAIF	9/25/2012	6.78%	93
CFI	10/31/2012	25.11%	57
EL	11/12/2012	1.67%	45
RE	11/26/2012	4.40%	31
GLW	12/3/2012	2.86%	24
CGX	12/12/2012	-4.14%	15
PAAS	12/20/2012	3.97%	7
S&P	Annualized	3.40%
Small Portfolio	Annualized	10.17%
Sector Model	Annualized	15.25%
Large Portfolio	Annualized	26.22%

 

Rotation: selling EL; buying OKE.

EL is in the Cosmetic industry, and OKE is in the OILGAS industry.

Looks like an inflation play, if I read the model right.  Note also the recent purchase of PAAS in the GOLDSIL industry, and the number of foreign stocks in the portfolio: RIMM, CAJ, DDAIF.

Of the ten stocks in the model, five are strongly counter to the U.S. dollar.

If we go over the fiscal cliff, however, these could suffer from a deflationary hit more than the others.  My model doesn’t read the news, of course.  Just a word of caution for anyone in the same kinds of stocks I’m in.

I’ll have more on the weekend.  Been down with the flu, but I’m better now.

Tim