Monday, January 07, 2008

1/7/08 Stock Purchase Update - Pulled Down By The Market

In my 12/31/07 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 achieved a new high with a gain of $4,098 for a 28.8% return. As of 1/4/04, the portfolio had pulled back to a gain of $3,823 for a 26.9% return, due to the market decline in the first three trading days of 2008. The new purchases of PCU, CNH and BHP are only up slightly at $260 for a 2.4% return. Both PCU and BHP continue to have small losses. 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

Current Price

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



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



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



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



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 lead me to expect that the bull market will last through summer, 2008. However, the economic data this week or month may cause the bull market to end earlier. For either case, I expect the market to continue to be choppy in 2008. At this time, I do not plan to add any more to the amounts that I have already invested in the above table.

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

Copyright © 2008 Achievement Catalyst, LLC

1 comment:

Frugal Dad said...

I think the Fed is way behind the curve on this one, and there lack of significant action will indeed take us into recession. Perhaps if earlier, more significant cuts, had been made to interest rates we could have avoided this slump.