2/11/08 Stock Purchase Update - Riding Out The Market Decline

With the market decline of early 2008, the stock purchase updates have not been as fun to write. However, I am going to remain disciplined and do a weekly update until I sell the positions from the portfolios. Currently, the portfolio is based on a 10/15/07 updated buy list of Potash (POT), Southern Copper (PCU), CNH Global (CNH) and BHP Billiton (BHP) and a January, 2008 stock pick update of Apple (AAPL), Research in Motion (RIMM), Intuitive Surgical (ISRG), Priceline (PCLN), Core Labs (CLB), and Google (GOOG). The total portfolio has a gain of 1.6% due primarily to a 92% gain in Potash. Without Potash, the portfolio would be down 10.9%. Here's the current status of the stocks in the portfolio:

	My Wealth Builder 10/15/07 Buy List
Stock [purchase date]	Shares	Purchase Price	Current Price 2/08/08
Potash (POT) [6/7/07]	50	$71.59	$137.50
Southern Copper* (PCU) [11/13/07]	40	$108.24	$95.52
CNH Global NV** (CNH) [11/13/07]	50	$55.22	$47.78
BHP Billiton (BHP) [11/27/07]	50	$71.54	$65.80

*On 1/18/2008, the system gave a sell signal for PCU. I will sell PCU during an upcoming market rally, hopefully above the purchase price.
**On 2/1/2008, the system gave a sell signal for CNH. I will also try to sell CNH during one of the upcoming rallies.

	My Wealth Builder January, 2008 Buy List
Stock [purchase date]	Shares	Purchase Price	Current Price 2/08/08
Apple (AAPL) [1/17/08]	25	$160.93	$125.48
Research in Motion (RIMM) [1/17/08]	25	$88.71	$89.71
Intuitive Surgical (ISRG) [1/18/08]	20	$261.81	$300.68
Priceline (PCLN) [1/18/08]	25	$92.33	$101.79
Core Labs (CLB) [1/25/08]	25	$116.25	$109.56
Google (GOOG) [1/25/08]	20	$582.66	$516.69
Google (GOOG) [2/1/08]	10	$521.27	$516.69

The market activity appears to stabilized with a short term bottom. As of the close on 2/8/08, the Dow, Nasdaq and S&P 500 indices were down 4.3%, 4.5%, and 4.5% year to date, rebounding from the lows of the year.

I continue to 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 and financial institutions. 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 early 2008 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 will continue to hold this portfolio. However, with the exception of Google, I do not plan to add any more to the amounts that I have already invested in the above tables.

Full disclosure: I own all the stocks mentioned in this post.

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

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