Last week I started two portfolios: Low R-squared and Low Risk, High-Growth Potential. This post will provide a brief update on performance. No new companies have been added to the portfolio this week.
Low R-squared Portfolio
Last week the portfolio was down -1.14%, but this week it's up 1.94% on a 3.4% increase for the entire week; that's 3% better than the general market. I'll be adding another company to this portfolio on Monday and the article will be released to the public on Tuesday. You're going to like this one!
Low Risk, High Growth Potential Portfolio
The Low Risk, High Growth Potential portfolio only contains Bank of America (NYSE: BAC) for now, which I bought at $16.16. A snapshot is below. Last week the portfolio was up 1.73%, this week it's down to 1.30%.
To all those that don't think a rate hike is eminent take a look at the April 2015 Senior Loan Officer Opinion Survey on Bank Lending Practices. The Fed has to raise the IOER (and therefore fed funds) in order to incentive banks to keep the $2.1 trillion in excess reserves at the Fed and not extended as credit. The raising of rates has less to do with the state of the economy than most appreciate.
Look for an article out on Monday on Citigroup (NYSE: C). I will not be adding Citigroup to this portfolio because I'm not convinced that Citigroup is out of the water on litigation, especially with the recent charges from the DOJ.