Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Texas Stocks Rise in 2011, While Global Markets Decline

|Includes:COP, EPD, HAL, KMB, Schlumberger Limited (SLB), T, TXN, XOM
Texas Stocks Rise in 2011, While Global Markets Decline.
 
Global diversification failed investors in 2011 with many markets around the globe down double digits and some firmly in bear market territory. The S&P500 ended the year flat but one of the top performances of the year, as indexes in China (down 22%), Brazil (down 18%), France (down 17%), Germany (down 14.7%), and India (down 25%), all finished the year substantially down. 
 
In comparison, the SPADE Texas Index (NYSE: TEXAS) finished the year at 901.40, a gain of 2.59%. In the past three years, the Index, representing the largest 90% of public companies headquartered in Texas, has seen gains in excess of 65%. Longer term, since 2006, TEXAS was up 19.6% vs. just 0.7% in the S&P500.
 
According to Scott Sacknoff, manager of the SPADE Texas Index, “From an investment perspective, Texas has a diverse economy with significant interests in energy and a business friendly political climate. Over the past several years, investors in Texas would have consistently seen gains that those invested with the S&P500 have not.”
 
Although home to the 15th largest global economy in terms of GDP, currently no products exist to enable investors to invest in the Texas market. An ETF tracking the TEXAS index was briefing listed on the New York Stock Exchange in 2010 but the sponsor failed to market the product instead focusing on other activities.  Believing that there is still an opportunity, Mr. Sacknoff is currently discussing the index with potential fund sponsors, institutions, and pension fund managers to identify investor interest in state and regionally-focused funds. 
 
“Financial products that enable investors to invest in Texas would benefit the state and investors. From a state-perspective, anytime you can increase investor interest in a region, it makes them healthier. From an investor standpoint, it provides the opportunity to invest in companies that can take advantage of regional markets and states with favorable tax policies instead of focusing on the U.S. as a whole.”
 
Additional details on the SPADE Texas Index can be found at spadeindexes.com/texas
 

Annual Price Returns
 
SPADE Texas Index
(NYSE: TEXAS)
S&P 500
2011
2.59%
0.00%
2010
19.10%
12.78%
2009
35.02%
23.45%
2008
[45.36%]
[38.48%]
2007
19.85%
3.53%
2006
10.74%
13.62%
 
 
The ten largest companies in the SPADE Texas Index as of 12/30/11 and their performance in 2011: 
 
AT&T
2.92%
Conoco Philips
7.00%
Schlumberger
[18.19%]
Exxon Mobil
15.91%
EPD
11.46%
APC
0.22%
APA
[24.03%]
TXN
[10.43%]
HAL
[15.48%]
Kimberly Clark
16.69%


Stocks: SLB, T, COP, XOM, EPD, KMB, TXN, HAL