Stock Performance

The first month of the year has passed and it’s time to tally up the results. The portfolio that I managed as performed as such:

• GLD +2.56%
• COP –7.70%
• EEM –0.32%
• VLCM +9.91%
• GOOG +8.91%
• MRK +1.77%
• NUAN –0.94%

For a total weighted gain of +2.31%

My only concern for the month of February is the emerging markets. I’m afraid the long streak they are on is about to end, and I expect some below domestic return performance. As they say--most of the money comes at the end of a run, and I think this is what we are seeing right now. I have seen many TV reports praising the benefits of having emerging markets exposure, and heard enthusiasts pouring as much as 40% of their portfolio in international stocks.

It’s hard to imagine that the countries theses companies are established in will be supportive in economic hard times. A small recession could seriously impair their ability to grow, as I have seen it many times, popular and socialist governments will turn their attention to the neediest of the population instead of the fortune 500 (I don’t think the level of campaign donation by emerging markets countries could ever attain the levels seen in the U.S.).

Be wary of overexposure to one sector!