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Robert Ropes A Racoon

|Includes: ARCB, CVX, DORM, Exxon Mobil Corporation (XOM)

It was another week of misery for the average investor, as the markets reacted to the minutes from the FOMC meeting which once again proved to anyone with two brain cells that connect, the when it comes to things economic, the government simply has no clue.

One opinion, admittedly my own, is that if the government and the central banks and all the rest of the retreads attempting to "steer" our economy would simply get the hell out of the way, the economy will fix itself. Welcome to the wonders of supply and demand.

Portfolio Commentary

The Wax Ink portfolio saw its biggest single weekly decline of the year last week, dropping 6.0%. By comparison, the Dow was down 3.6%, the Nasdaq was down 5.6%, the S&P 500 was down 4.5%, and the Russell 2000 was down 5.7%. This puts the weekly equilibrium change for the indices at -5.0%.

Year to date, the Wax Ink Portfolio is up 0.5%, while the Dow is up 0.2%, the Nasdaq is up 4.6%, the S&P 500 is down 2.9% and the Russel 2000 is up 0.5%, putting the annual equilibrium changes for the indices at 0.3%, or 0.2% better than the Wax Ink portfolio.

Market Commentary

Equities are simply not the place to be according to the large money houses. Nope, the place to park your investments now is in Treasuries. The yields on Treasuries varies from 0.05 for a 90 day Treasury to 2.8 for a 30 year Treasury. Regardless, by the time the big money houses take their cut, the average investor will simply end up with soiled underwear.

Such an investment may appeal to some, and if you happen to be one to which it does, I wish you all the best. But to me, and the rest of us at Wax Ink, now is the time to update the due diligence you have done on your watch list of stocks, and start to put some cash to work.

Certainly there are issues with world economy, what with Greece, Spain, and Portugal considering a possible exodus from the EU. But so what? Does that mean there will be no more commerce conducted in those countries? Will they become outcasts in the eyes of the rest of the world? Is that any reason to invest in T-Bills?

Oil ended the week at $91.51 per barrel after touching new 2012 lows. Does that mean that an investment in Exxon Mobile Corporation, (NYSE: XOM), or Chevron Corporation, (NYSE: CVX) would be ill advised?

There was additional market weakness in the trucking and auto parts industries last week. Does that mean investments in Arkansas Best Corporation (Nasdaq: ABFS) or Dorman Products, Inc. (Nasdaq: DORM) should be sold immediately?

What it means is simply that investors that have taken the time to put forth the effort needed to make an informed investment decision will add shares to existing equity positions as appropriate, and add new equity positions when appropriate, regardless of the pundits, the analysts, and the rest of the Wall Street and CNBC crowd, recommend.

Equity Commentary

Holdings in the Wax Ink portfolio were again reduced to ground beef in the markets last week, with uranium producer USEC, Inc. (NYSE: USU), down 18%, sheetrock and general building materials manufacturer USG Corporation (NYSE: USG) down 17%, and specialty chemical manufacturer W.R. Grace and Company, Inc., (NYSE: GRA), down 14%.

Moving from the crapper to the sink were auto parts company Dorman Products, Inc. (Nasdaq: DORM), unchanged for the week and conglomerate General Electric (NYSE: GE) also unchanged for the week.

Political Commentary

There is no political commentary this week and I could not find the sounds of bugs farting in a pond. But I did find this, which is just as good as any political commentary I have ever heard.


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Disclosure: I am long ABFS, DORM, USU, USG, GRA, GE.