AlphaProfit Sector Model Portfolios Will Be Repositioned on December 31

The AlphaProfit Core and Focus model portfolios will be repositioned on December 31 with new sector ETFs and Fidelity Select funds picked by the proven ValuM investment process to capture opportunities in the evolving market milieu.
By: Uma Maheswari
Dec. 29, 2009 - PRLog -- Subscribers to AlphaProfit’s premium service have benefited from the equities rally in 2009. The sector-based Core and Focus model portfolios are each up 65% since the market bottomed in March. Gains from Fidelity Select Automotive (FSAVX) and SPDR S&P Retail (XRT), which year-to-date are up 127% and 79%, respectively contributed to performance of the model portfolios.

Reviewing the recent trends in the U. S. stock market, Dr. Sam Subramanian, Managing Principal of AlphaProfit Investments, LLC and Editor of the AlphaProfit Sector Investors' Newsletter said, "Overall, 2009 has been a good year for equities.”  

Subramanian pointed out that the character of the stock market rally has however changed recently. While lower quality small-cap shares performed well in the second and third quarters, investors have preferred higher quality large-cap names in the fourth. This drift in investor sentiment towards higher quality names is also reflected at a sector level. The Healthcare Select Sector SPDR (XLV) is up 10% in the fourth quarter while the Financial Select Sector SPDR (XLF) is down 3%.

Subramanian said, "The Sector Newsletter's model portfolios will be repositioned on December 31 to capture opportunities in the evolving market milieu."

AlphaProfit applies its ValuM investment process ( ) to select sectors and industries for inclusion in the Core and Focus model portfolios. This process uses valuation, momentum and news quality as the three key criteria for evaluating sectors. Subramanian said, "This multi-factor evaluation picks up winners with a higher success rate than pure momentum strategies.” A dollar invested in the ValuM process selections in 1994 is now worth nearly $22 while the same investment in the S&P 500 is worth just $3.

In conclusion, Subramanian said, "The U. S. economy is recovering and the Federal Reserve is likely to maintain its accommodative monetary policy. The economy should continue to expand over the next few quarters. We expect the employment picture to improve in 2010. In general, this is a good time for investors to be invested in equities."

AlphaProfit's premium service provides multiple avenues for investors to profit. In addition to sector selections, subscribers receive recommendations on no-load mutual funds ( ), exchange-traded funds ( ), and stocks. In 2009, AlphaProfit premium service users also gained from Matthews India Fund (MINDX) and Yacktman Fund (YACKX) recommendations. These no-load mutual funds are up 96% and 60%, respectively. AlphaProfit's stock recommendations on average gained 14% with a holding period of less than 2 months helping subscribers more than double their money.

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Publishes investment newsletters that include practical portfolios for mutual fund, exchange-traded fund, and stock investors. Published since 2003, the AlphaProfit Sector Investors' Newsletter has received Hulbert Financial's #1 rank numerous times.
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