Seeking Alpha by Adding Beta

Emerging markets (India, China) are hot again. Both SSE and BSE indexes are making records every day. From macro economic point of view, these markets are getting slightly ahead of their economies. If you are a long-term investor, then you don't need to worry since macro-economic, demographic factors are in favor of continuing growth for years to come with some bumps along the way. However if you are momentum player, you may want to watch out next few months. Remember last summer (I was in India at that time) when BSE index came from 12000+ to 9000. You may want to cash out some of your winners by Apr end and keep some cash handy to invest at lower levels. Same goes for China market As saying goes in US, sell in May and go on summer vacation! Coming to my individual recommendations in previous posts, here is quick update: Teledata Informics still going strong. It is at 87+ and nearing my target of 100 within 3 months of my recommding at 47. Latest Q results were great and on annua...

Since my last posting on "seeking alpha in Indian market", my recommendation "Teledata Informatics" has increased nearly 40% in 2 months (from 47 to 65+) when BSE sensex has moved only sideways. Similary my last year's recommendations (Aptech) is doing great and just crossed 260+. I wish I can start some type of hedge fund focusssed on Indian market and apply my "alpha" finding skills:-) My another prediction about SSE Composite Index crossing 3500 has already came true. It is trading at 3560+ as of Monday 4/16. IMO it is getting way overheated even to my taste. But momentum is very strong and I won't be surprised if it crosses 4000 by year end but along the way there would be lot of volatility. Here is another "alpha" stock in India market: Zee news: This is spinoff from Zee entertainment mainly focussed on news in various languages. There are many news only channels in India (NDTV, Aaj-Tak, Doordharshan and so on) but Zee is one of t...

As promised, I have been tracking my model portfolio regularly and here are the results and highlights of Q107 results. Model portfolio resturns were 2.22 % (compared with .6% for S&P). So at least till now, I am track to beat S&P by 2% points by end of year Best performaing asset was FSESX: FIDELITY SELECT ENERGY SERVICES which returned 15.59% and Yahoo stock was second with 12.73% return Worst performaing asset was Cisco stock which was down by 10.36%. Second worst was FXI:ISHARES TR FTSE INDX which was down by 3.31% Overall till now the portfolio is well balanced and even during late Feb sell-off held pretty well. I am not doing any adjustments to this model portfolio Here are my forecasts for overall market: USA market will go sideways for next quarter till there is clarity on economy and interest rate direction Chinese market will keep on going upwards and Shanghai Index may break thru 3500 by quarter end (from 3250+ now) Indian markets will continue to go sideways and BS...