Weekend Review of the Week that Was -- 2/9/14

 

We were hoping for a better start to the week on Monday.

     Those who watched the Super Bowl this year will understand why we felt somewhat like the Denver Broncos as the week began. We had a rather poor start to the year in January, but having closed out that month, we were hoping for a better start in February. It's sort of the way the Broncos, down 22-0 at the half, must have regrouped, hoping for a better second half.

    Instead, they experienced a kick-off returned for a touchdown as the first few seconds of the second half unfolded. In like manner, Monday turned out to be the worst day we've had in about a year and a half, with most funds declining by well over 2%.

    At that point we stood at the edge of the abyss. Oh, not the really big dark abyss --- not like the Grand Canyon or something. More like a cute, little abyss  -- maybe like the hole you dig when you're gonna put in a tomato plant, maybe with some manure at the bottom. If we had fallen just a little more, most of our funds would have started sporting double-digit losses for the year, and it surely would have been a long way up out of that tomato hole.

    For the hapless Broncos in this year's Super Bowl, things just got worse and worse, but that's where the analogy breaks down, because on Tuesday, we got a little bounce, maybe a "dead cat bounce" we were thinking, but a bounce, with most funds up maybe .5% to .75% for the day. Wednesday, things were flat and smooth, hardly any movement. Thursday, some reports came out that the Moron doesn't really understand, and the buying kicked in with some energy, most funds up over 1% on the day. Friday was even stronger, and our best performing fund for the day, Fairholme was actually up over 2%.

    So despite the over-dramatic financial headlines, no manured tomato hole abyss for now. In fact, for the year, there are actually 4 funds (JSVAX, SEQUX, RPMGX, and FKINX) showing small gains, while 26 MFM funds are still showing losses -- the average being about -2.5%.

    Royce Special Equity still has the biggest negative for the year at minus 5.84%, as we head into the middle of  the second inning of the 12 inning game that will be 2014. Of course the Moron's good-as-gold promise still stands, Royce Special Equity will not be #30 by the end of the year.

    Voila! there it is: the week in a nutshell. Football, gardening, deceased pet, and baseball analogies included at no extra charge!