Thursday, January 3, 2013

Too much too fast?  We expected some movement in the rankings away from the US after the past couple of big days but we got the opposite instead.  Quant likes the action and wants more, all of today’s top ten are US funds led by iShares’ Russell 2000 and 3000 Funds (IWM and IWV) in 1st and 2nd place respectively.

The former is their small cap fund and the latter is their broad market fund.  Readers know the 2000 has been scoring better recently as have other small and mid cap funds.  It is followed in 5th place today by the iShares Russell 2000 Growth Fund (IWO), another small cap fund devoted to the growth sector which is also scoring better.  It’s not that Quant doesn’t like value, we can still see a few of those in the top 25 which is also almost entirely US funds, except for China’s FXI in 21st place.  Regarding sectors, we still see technology, energy and industrials scoring well.  The iShares Goldman Sachs Technology Index Fund (IGM) and the Powershares Dynamic Energy Fund (PXI) remain in the top 5 at 3rd and 4th place today, and the SPDR Industrial Select Sector Fund (XLI) stays in the top 10 at 9th place.  Today’s most notable mover is the SPDR S&P Metals and Mining Fund (XME) jumping 137 positions into 8th place.  Our readers know this is not a bomb shelter gold fund but more of an industrial metal fund suggesting Washington has found the magic growth formula to drive the US economy forward, or at least the stock market anyway.

Isn’t it great the way our politicians solve our problems?  Until the media can come up with a new Armageddon date to count down in the lower right of our TV screens, Quant remains on the US bandwagon.  Will it be the next level of the fiscal cliff?  The date that Secretary Geithner runs out of shell games to rejigger our debt?  Who knows and who cares?  Don’t worry be happy, and buy the US market, Quant says it will outperform until then.

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