- Enlightened-American Portfolio: +8.1% through Apr 6th, 2011 (my actual IRR, including cash balance)
- DJIA: +7.3%
- Nasdaq: +5.5%
- S&P 500: +6.2%
- DJ Wilshire 5000: +6.5%
- Russell 2000 (smallcap): +9.0%
As some of you know, I have decided to close down the EA-Premium service. I must thank all the wonderful supporters -- they definitely made it a tough decision -- but one look at my uncensored portfolio should give a clue as to why I chose to do so. It's tremendously difficult to run an investment newsletter service when 99% of the time, there is nothing to do besides wait and little to say about it. Long-time readers will recognize the bulk of my commentary as seemingly endless variations on "market's pricey ... investors crazy ... nothing to do ... best to wait" and frankly, starting a subscription service didn't (nor should it have) change my market outlook. I believe in not talking unless I have something to say. But subscribers pay for content and as I feared, content provider, especially as a one-man newsletter operation, is a full-time job not necessarily compatible with being an investor.
What all this means is readers can expect more activity on this blog than in the last year or so. A visit to the portfolio page will show a streamlined, uncensored version of what used to be posted, all in the interest of making blog posts and updates less time-intensive. Unfortunately, I have been set back by a recent data + back-up failure so am (very) slowly rebuilding my watchlist but readers can expect more discussion on those stocks in my list in coming weeks and months.
As for my portfolio overview and market outlook, let's see ... market looks pricey ... investors are crazy to jump into this market ... none of the stocks on my watchlist are cheap enough to buy ... best to wait for a good opportunity ... nothing to do. And I can't argue with doing nothing as my portfolio continues to outperform most indices, even with 30% cash dragging on returns.
Big positions in energy and precious metals accounts for the bulk of performance thus far. Money is cheap. Actually, money is less than cheap -- it's basically free to Wall Street so I favor hard commodities. I have held this stance since starting the Enlightened American back in 2006 and nothing has changed. The big picture is much like a jumbo jet -- both take a long time to change course and if anything, the Fed's actions in recent years has only accelerated us along the path, not corrected it.
As always, YMMV.