Quote of the Month

March 1, 2012

Everyone is a market timer.  Some people buy when they have money, and sell when they need money, while others use methods that are more sophisticated.—-Marian McClellan, co-inventor of the McClellan Oscillator and Summation Index

This is a good reminder that any transactions you make are inextricably linked with time.  While there is no way to ever know where the exact top or exact bottom is, there are plenty of diffusion indexes that can usefully identify oversold markets that present good buying opportunities.  (For one example, see here.)  You might as well try to be intelligent about your purchase decisions.

HT: Tom McClellan, Bollinger Markets List

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Happy 5th Birthday PDP!

March 1, 2012

Five years ago today, the PowerShares DWA Technical Leaders Portfolio (PDP) began trading on the NYSE.  PDP has outperformed the S&P 500 since inception and for each of the periods shown below!

pdp3 1 Happy 5th Birthday PDP!

The methodology:

The PowerShares DWA Technical Leaders Portfolio (Fund) is based on the Dorsey Wright Technical Leaders™ Index (Index). The Fund will normally invest at least 90% of its total assets in securities that comprise the Index. The Index includes approximately 100 U.S.-listed companies that demonstrate powerful relative strength characteristics. The Index is constructed pursuant to Dorsey Wright proprietary methodology, which takes into account, among other factors, the performance of each of the 3,000 largest U.S.-listed companies as compared to a benchmark index, and the relative performance of industry sectors and sub-sectors. The Index is reconstituted and rebalanced quarterly using the same methodology described above.

PowerShares DWA Technical Leaders NYSE Bell Ringing Ceremony 3/1/2007.

Click here for more information about PDP.

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Fund Flows

March 1, 2012

The Investment Company Institute is the national association ofU.S.investment companies, including mutual funds, closed-end funds, exchange-traded funds (ETFs), and unit investment trusts (UITs).  Members of ICI manage total assets of $11.82 trillion and serve nearly 90 million shareholders.  Flow estimates are derived from data collected covering more than 95 percent of industry assets and are adjusted to represent industry totals.

ici3112 Fund Flows

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