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Performance - Week Ending 01/04/2013

For quite some time the Federal Reserve Bank has been pissing taxpayer money down a hole, with no results.

Last week it appears that the Fed decided to take credit for recent economic numbers as a way to validate its policies. That and the suspension of fiscal cliff wrangling, allowed the markets to move up.

I personally don't believe anything that the government reports because I think all politicians are liars and cheats and the only thing they are interested in is themselves.

But admittedly, I was very thankful for the increase it caused in my portfolio.

My name is Wax, and I am an individual investor, a working class investor, just trying to do the best I can with what I have.

Those of us that actually work for a living know that saving money is hard. Investing that saved money is even harder, and understanding the risks before you invest is harder still.

It can be done, but you have a lot of work to do.

I can provide you with a baseline equity report, which is nothing more than a starting point for your own research. But you have to do the work, I cannot help you.

You need to be aware that none of this is easy. It requires effort, patience, and one helluva lot of dedication.

You also need to know up front, in advance, managing your own money...isn't for everybody.

Aside from some worksheets, the only other thing I can do is let you follow along with me and my investing struggles as I manage The Wax Ink Portfolio.

That's it. There's nothing else I can do for you. I'm sorry I didn't make the rules, but I do have to play by them.

So if this "place to start" interests you, welcome, I'm very glad you're here.

If you are looking for market commentary intermixed with the bullshit that is politics, you're in the wrong place.

The markets increased thanx to the end of the fiscal cliff debate. Nobody seemed to notice, or even to care, that the debt ceiling had been reached.

But hey!, since the majority of American voters aren't interested in the country's financial health, why should Congress be interested?

As I noted earlier in the week I would, I closed my position in Insteel Industries, Inc. (Nasdaq: IIIN). Closing that position has tended to skew this week's portfolio performance to the high side, with the portfolio posting a 7.4% gain for the week.

By comparison, the Dow closed up 3.8%, the Nasdaq was up 4.8%, the S&P 500 was up 4.6%, and the Russell 2000 was up 5.7%.

Year to date, the portfolio is up 23.6%, while the Dow is up 10.0%, the Nasdaq is up 19.1%, the S&P 500 is up 16.6% and the Russell 2000 is up 18.7%.

The portfolio breakdown remains the same, with 70% of the portfolio in equities, 30% of the portfolio in cash, and 0% of the portfolio in bonds.

I continue to research stocks, with 36 companies currently on my research list.

When you work for a living, there isn't much time for equity research, especially while trying to create at least 10 worksheets a week, which hopefully explains why the research list doesn't seem to change very often.

This week's moving on up stocks were airplane repair company AAR Corporation (NYSE: AIR), up 11%, garage door and government telephone headset maker Griffon Corporation (NYSE: GFF), up 10%, and trucking company Arkansas Best Corporation (Nasdaq: ABFS), up 10%.

This week's in the crapper stocks were communication equipment maker Tellabs, Inc. (Nasdaq: TLAB), down 3%, independent refining and marketing company HollyFrontier Corporation (NYSE: HFC), down 1%, and heavy construction company Layne Christensen Company (Nasdaq: LAYN), unchanged.

Not Performing
There are several portfolio stocks down 35% or more from their entry point, including garage door maker Griffon Corporation (NYSE: GFF), down 35%, government contractor SAIC, Inc. (NYSE: SAI), down 40%, and communications equipment company Tellabs, Inc. (Nasdaq: TLAB), down 58%.

Over the course of the next several months some of these non-performing stocks will reach their 5 year portfolio anniversary. At that time, I will be making a decision about dumping them, or keeping them in the portfolio for another year.


Wax Ink is comprised of individual investors, NOT licensed or registered with ANY government agency. Please obtain the advice of a registered investment professional BEFORE considering any information obtained from this site.