The latest issue of the Iacono Research Weekend Update has been posted to the website and is now available for subscribers here. There are no changes to either the model portfolio or the buy ratings this week, but recent covered call sales and financial market developments are covered in the following discussion topics:
The executive summary is as follows:
A better-than-expected labor report offered renewed hope for the U.S. economy, however, the recession in Europe appears to be worsening and there were fresh signs of slowing growth in China. The European Central Bank cut short-term interest rates and the Federal Reserve promised to keep its monetary stimulus in place, all of which was greeted warmly by U.S. investors who pushed equity markets to record highs.
The natural resource sector saw sharply higher prices paced by big gains for corn, wheat, and many industrial metals, all of which continue to rebound from their April sell-offs. Precious metals saw modest improvements along with beleaguered mining stocks while both energy stocks and REITs moved higher. For the week, the model portfolio rose 0.7 percent and is now down 13.5 percent for the year.