The S&P500 (SPY) chart points long, same as it did last month. The pullback that I was expecting in August did not happen and instead the market continued to push upward. Last month I went stronger into equities in my 401K and it was the right decision. The monthly 401K analysis that follows remains somewhat mild in its selections as it is weighed with bond funds picks. Being as conservative, I also hedge my long positions using SPY put options in a separate account. I am extremely averse to large losses and will do everything I can to prevent that, including giving up as much as third of my upside through buying “fund insurance”.
Going into my current company’s 401K the top funds selected by my monthly analysis are Fidelity Equity Income, Fidelity Government Income fund, Royce Opportunity and Fidelity Blue Chip Growth fund. Royce Opportunity requires a long stay in the fund and I will have to consider whether I want to get into it or not as I don’t want to deal with the redemption fee should I want to get out earlier. See charts below on these funds. I will move some money out of Fidelity Fund and place it into the Fidelity Blue Chip Growth fund, Monday. I already have monies in Fidelity Govt Income.
As far as the 401K monthly analysis on my previous employer’s funds, top of the picks is Cohen & Steers Realty fund (same as last month). Next picks are PIMCO Real Retn Admin and American Century Equity Income Instl. The choices are same as last month and I will leave these all unchanged Monday.
Notes: The methodology I am using has been written up in the past and is based on a momentum strategy where I put my money into the funds with the best performance based on a slower monthly rate of change analysis using 3 and 6 months performance data. I conduct the analysis 1 month, always during the weekend between the 2nd and 9th day of the month. All my change orders are submitted Sunday night and are effected after 4 pm Monday.
No comments:
Post a Comment