Williamstown, MA, June 29, 2008 --(PR.com
)-- Year to date, the PowerShares Momentum Tracker Portfolio leads the S&P 500 Index, with a negative 4.59 percent return after fees to a negative 9.97 percent return for the benchmark. The PowerShares Momentum Tracker Portfolio decreased 2.10 percent over the past week, while the S&P 500 lost 1.18 percent, the Dow Jones Industrial Average fell 1.81 percent, and the NASDAQ declined 1.17 percent.
The Federal Reserve held rates steady yesterday and the statement accompanying the announcement warned that higher inflation would come with a stronger economy. Several major corporations announced price increases this week, including GM, Nissan, Dow Chemical and Rio Tinto. Don Dion, publisher of PowerShares Momentum Tracker, noted that “there are no signs (the price increases) were based on higher growth.”
“Pricing power is in the hands of materials producers because the economy is experiencing cost-push price increases, not demand-pull”, Dion noted, “If the central bank was printing too much money, excess dollars would be chasing the same number of goods, leading to price increases across the board, including spiraling wage costs. However, there are no signs of rapid wage increases.”
PowerShares Momentum Tracker is published weekly and belongs to the Fidelity Independent Adviser family of newsletters. Don Dion, debuted the flagship publication, Fidelity Independent Advisor, 11 years ago, and it now reaches 40,000 subscribers. Dion’s 6 newsletters offer investment advice and model portfolios.
The past week has been a difficult time for investors, and only five of the funds listed by the PowerShares Momentum Tracker had positive returns. The top two performers were PowerShares Dynamic Pharmaceuticals (PJP) and PowerShares Dynamic Biotech & Genome (PBE), up 2.36 and 1.74 percent, respectively. PowerShares DB Currency (DBV) and PowerShares DB Dollar Bearish Fund (UDN) rallied as well. Both funds are short the U.S. dollar; DBV is also short the Japanese yen and Swiss franc, two underperformers last week. Finally, PowerShares Dynamic Oil Services (PXJ) increased 0.06 percent.
About Don Dion, Publisher of PowerShares Momentum Tracker:
Don Dion is the publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors Don’s commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 100,000 subscribers in the United States and 29 other countries, Fidelity Independent Adviser publishes six monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers. http://www.fidelityadviser.com/
Mr. Dion is also president and founder of Dion Money Management, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Massachusetts, Dion Money Management manages more than $850 million in assets for clients in 49 states and 11 countries. A licensed attorney in Massachusetts and Maine, Mr. Dion has more than 25 years’ experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management. http://www.dionmm.com/