Monday, January 14, 2008

1/14/08 Stock Purchase Update - Portfolio Continues Declining

In my 1/07/08 stock purchase update, I wrote about how the 10/15/07 updated buy list of Potash (POT), Southern Copper (PCU), CNH Global (CNH) and BHP Billiton (BHP) was performing. In that article, the portfolio had 3,823 gain for a 26.9% return. As of 1/11/08, the portfolio had pulled back to a gain of $2,862 for a 20.1% return, due to the market decline in the first eight trading days of 2008. The portfolio is now down 25% from its high on 12/28/07. The new purchases of PCU, CNH and BHP are down $506 for a 4.7% loss. Both PCU and BHP continue to have large losses of 11.4% and 5.3% respectively. Here's the current status of the stocks I own in the portfolio:

My Wealth Builder
10/15/07 Buy List
Stock [purchase date]SharesPurchase
Price

Current Price
1/11/08

Potash (POT) [6/7/07]50

$71.59

$138.75

Southern Copper (PCU) [11/13/07]40

$108.24

$95.93

CNH Global NV (CNH) [11/13/07]50

$55.22

$58.80

BHP Billiton (BHP) [11/27/07]50

$71.54

$67.69


The market activity continues to be concerning, with either narrow breadth or a high number of new lows. I believe that the probability of a recession in 2008 is relatively high. The multitude of negative factors will eventually outweigh any actions by the government. Originally, the Fed interest rate cuts and other actions led me to expect that the bull market would last through summer, 2008. However, the economic data in January, 2008 may cause the bull market to end earlier. For either case, I expect the market to continue to be choppy in 2008. For now, I will continue to hold this portfolio, but I do not plan to add any more to the amounts that I have already invested in the above table.

For more on Strategies and Plans , check back every Monday for a new segment.

This is not financial or investment advice. Please consult a professional advisor.

Copyright © 2008 Achievement Catalyst, LLC

1 comment:

living off dividends said...

i just quoted richard russell on a post:
http://www.livingoffdividends.com/2008/01/13/have-gold-prices-peaked/

he thinks we in for a bear market and recession.
I think commodities will do well in the long run.

I own BHP, some gold stocks (and coins) and a lot canadian oil/gas income funds.