Sectors and Styles Strategy Report: June 30, 2008

excerpts from this week’s report:

Model Growth Portfolio (MGP)
"A moderately rough week with a negative 28 basis points of relative performance resulting in a dropping of the year to date outperformance to just under 3% at 299 basis points. All in all, a very good relative performance for the first half of the year…”

Model Growth Portfolio (MGP) Re-balancing
“No position changes are being recommended at this time...”

ETF Market Monitor
Econ. Sectors & Industries: Energy did well but so did Heathcare. Networking and Aerospace and Defense were to weakest.
Size & Styles: Given the carnage, the Smids hung in there, particularly Mid Cap. Growth continued to best value across all size categories.
Global: India continues its terrible absolute and relative performance.
Other: Blackstone had a surprisingly strong week.

Expected Return Valuation Model
“Fearful expectations (thanks to lower equity prices this past month) have driven the ERVM back into attractive return territory. That is if one believes that global recession is not just around the corner. According to the most recent bottom-up analyst expectations at S&P, such a dire scenario is not foreseen even if one were adjust for the still overly optimistic, which are very much in the process of decline to sanity…”

Moving Averages Scorecard
“Another big down week has turned the data decidedly to the downside and reaffirmed the negative meag trends that appeared to be in process of some repair. All that is gone for the time being with a 33.33% aggregate reading. And the need for more time to repair before any upside can be reliably forecast…”

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