S&P 500:                 1874 (133.4%)

Portfolio:         $833,223 (166.6%)

IBB                    1153 shares    $310,041

VHT                2025 shares    $223,659

PGJ                   7750 shares    $259,005

Cash                                           $40,704

Notes: The portfolio has not made any changes this month, and has outperformed the S&P 500 by approximately double since beginning this blog.  The S&P 500 strongly recovered from a minor correction in February, but the portfolio was positioned in three of the best-performing sectors of February and outperformed the S&P 500:

S&P 500:                 1789 (127.3%)

Portfolio:         $757,509 (151.5%)

IBB                 1153 shares    $281,435

VHT                2025 shares    $208,312

PGJ                 7750 shares    $226,920

Cash                                           $40,704

Notes: The portfolio sold IAI, the brokerage ETF, and bought VHT, the Vanguard Health Care ETF.  Although the market in general was down for the year through February 7, the portfolio of growth sector mutual funds did not suffer the same fate:

S&P 500:                 1842 (131.1%)

Portfolio:         $771,287 (154.3%)

IBB                    1153 shares    $274,356

FSAVX             sold

IAI                     5675 shares     $219,004

PGJ                   7750 shares    $237,522

Cash                                            $40,405

Notes: The portfolio has made its first trade in months, as FSAVX has not performed as well as top funds/ETFs in recent months.  The portfolio has done well even since the January 2 update, in large part due to its biotech stake.

S&P 500:                 1832 (130.36%)

Portfolio:         $751,762 (150.3%)

IBB                    1153 shares    $261,823

FSAVX             3820 shares    $212,850

PGJ                   7750 shares    $236,607

Cash                                           $40,480

Notes: The portfolio has not made any changes since the October 1 update, and has outperformed the S&P 500 by 66% since beginning this blog.  The portfolio lagged the S&P 500 in October, but outperformed in November and December, as reflected in the chart below:

S&P 500:                 1695 (120.6%)

Portfolio:  $722,613,601 (144.5%)

IBB                   1153 shares    $246,488

FSAVX              3820 shares    $208,648

PGJ                   7750 shares    $226,997

Cash                                          $40,480

Notes: The portfolio still holds IBB (Biotech), but now holds PGJ (China) and FSAVX (autos).

The portfolio sold its position in IYZ (Telecom) on Monday, July 8, and bought the Fidelity Autos mutual fund FSAVX (the CARZ ETF is unavailable through my broker).  Positions now include:

FSAVX   3810.4  shares  $189,300

MJFOX  12141.5 shares   $185,522

IBB          1253.0 shares    $228,885

Cash:                                    $20,868

S&P 500:         1615 (114.9%)

Portfolio: $609,601 (121.9%)

IBB                   1253 shares    $223,647

IYZ                   7150 shares    $184,541

MJFOX     12,145.5 shares    $180,544

Cash                                          $20,868

Notes: The portfolio still holds IBB (Biotech), but sold IYT (Transportation) and ITB (Home Construction) for IYZ (Telecom) and MJFOX (Japan) at the beginning of May.  None of the four funds are up over the past two months, but we were fortunate to move out of ITB (Home Construction) before its 12% two-month decline.

June 3 numbers were as follows:

S&P 500:         1640 (116.7%)

Portfolio: $606,815 (121.3%)

IBB                   1253 shares    $222,319

IYZ                   7150 shares    $187,401

MJFOX     12,145.5 shares    $175,930

Cash                                          $20,868

S&P 500:         1597 (113.6%)

Portfolio: $608,800 (121.7%)

IBB      1253 shares    $215,903

ITB      8160 shares    $197,961

IYT     1585 shares    $174,396

Cash                            $20,582

Notes: The portfolio has outperformed the S&P 500 over the past calendar year by 8.1%, and would have finished an additional 3% ahead of the S&P 500 if not out of the market due to a settlement/trading problem during a brief period last July.

S&P 500:         1557 (110.8%)

Portfolio: $576,323 (115.3%)

IBB      1253 shares    $200,166

ITB      8160 shares    $183,110

IYT     1785 shares    $190,959

Cash                            $582

Notes: The portfolio sold XLP, the consumer staples ETF that was bought last month as a defensive position, and bought IBB, a biotech ETF that has been performing well.  XLP’s modest gains helped mitigate some losses incurred, as housing (ITB) is down slightly on the month.

Our portfolio is up 15.3 percent since May 1, 2012 compared with 10.8% for the S&P500.  The portfolio briefly reached gains of 20% mid-month, while the S&P 500 reached a mid-month high of 1570, for a 11.7% gain since May 1, 2012.

Today the portfolio sold its stake in XBI, the Biotech ETF, and in XLE, the Energy ETF.  It bought 1785 shares of IYT, a Transportation ETF, and 4990 shares of XLP, a Consumer Staples ETF.  The portfolio now holds $952 in cash.