Solar City (SCTY) - A Core Equities Folio Holding

Solar City (SCTY) is a very recent addition to our Core Equities Folio. It is up over 14% since we took a position. Solar City was founded by Elon Musk. Elon is also the founder and CEO of Space X and Tesla Motors. Elon is indeed a visionary, much like the late Steve Jobs was. The solar industry currently ranks #2 out of the 197 industries tracked by Investor's Business Daily.


Company Profile

SolarCity Corporation is engaged in the design, installation and sale or lease of solar energy systems to residential and commercial customers, or sale of electricity generated by solar energy systems to customers. The Company’s solar energy products include Solar Energy Systems, and SolarLease and power purchase agreement finance products. The Company’s energy efficiency products and services include home energy evaluation and energy efficiency upgrades. The Company sells home energy efficiency evaluations to new solar energy system customers and existing customers. The Company’s other energy products and services include electric vehicle charging and energy storage. I might add, Solar City solar panels are used at the new Tesla car charging stations popping up around the country.

Addendum:

SolarCity continued its massive run as the Elon Musk-backed installer of solar energy products succeeds in getting the market to buy into its model of installment payment-based installations that match the savings over traditional electric energy. SolarCity's rally continued despite the dilutive nature of a secondary stock and convertible debt offering.

Congress Seemingly Unable to Reach Compromise on Debt Ceiling and Government Shutdown

Congress’ inability to reach a compromise to end the government shutdown and raise the debt ceiling is negatively affecting consumer confidence; consumer confidence has dropped at the quickest rate since 2008.

At this point, this mess in congress can not be ignored.  As a result I have gotten even more defensive. I have been raising cash levels systematically over the last couple weeks.

Consumer Confidence Survey

Historically, the market bottoms in October and then rallies strongly into year-end. I will take my cue from the market’s reaction to events as they unfold. 

Investors Shouldn't Fear a Government Shutdown

Why Investors Shouldn't Fear a Government Shutdown

By Steve Rothwell and Ken Sweet

— Sep. 28 3:00 PM EDT

 NEW YORK (AP) — The government shuts down. The economy unravels. Stocks plunge.

That may be Wall Street's worst fear, but history shows it's mostly overblown.

There have been 17 government funding gaps and shutdowns since 1976, ranging in length from one to 21 days. A funding gap is when federal agencies continue to operate without the passage of a regular appropriations bill. None has caused a market meltdown.

The average decline in the Standard & Poor's 500 index during one of these periods lasting 10 days or more is about 2.5 percent. For those lasting five days or fewer, the average decline is 1.4 percent.

"If they shut the government down for two days, the world's not going to stop revolving," says Ron Florance, deputy chief investment officer for Wells Fargo Private Bank.

A shutdown may even offer a buying opportunity.

Investors should consider the improving outlook for the global economy instead of worrying about Washington.

7:41 am Monday Sept 30th

As I write the Dow is down more than 100 points. At the same time, 3 out of the 4 stocks in our Core Equities Folio are up.

Core Equities Folio

Facebook Linkedin Las Vegas Sands and Celgene

GWM Model Portfolio Core Equities Folio Allocations:

Go Getter = 40%

In Betweener = 30%

Golden Years = 10%

The Core Equities Folio is primarily comprised of very large and liquid leading stocks. At times, these leading stocks follow the beat of their own drum. So, when the general market is stumbling, these stocks can actually continue to rise or go sideways. In a way, they help provide meaningful diversification.

I will more than likely be raising the Core Equities Folio Allocation to 20% from it's current 10% in the Golden Years Model Portfolio before long.

By the way, as I am finishing this blog post, all positions are now positive while the Dow is down 95 points.

8:04 am

Core Equities Folio

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.

Facebook Comes Back with a Vengance

Facebook (FB) jumped 6% in above-average volume. The gain breaks a three-day losing streak.

Facebook (FB)

Core Equities Folio

Today's Performance

Furthermore, I added back YELP yesterday, which turned out to be timely as it rose over 5% today.

Core Equities Folio Position Weightings:

Facebook  25%

Yelp 25%

Las Vegas Sands 25%

Ford 10%

Linked In 15%

Complete Summary of the Core Equities Folio Performance from Sept 1st 2013 to Sept 11th, 2013

Complete Summary of the GWM Core Equities Folio Performance and Position Weightings for the month of September so far. We are on the comeback trail.

The positions were valued on 09/11/2013 at 11:00 am.

GWM Core Equities Folio

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.

Las Vegas Sands (LVS) Yet Another Core Equities Position

Las Vegas Sands is another Gap Up stock. It is up another 1.10% today as I write. It is getting extended now with a High Jump Indicator reading of 96.47. When this reading hits 100 it has historically been a good time to take your profits.

Las Vegas Sands

Daily Chart

* Las Vegas Sands has a 10% allocation in the Core Equities Folio.

Facebook (FB) Another Core Equities Folio Winner

Facebook's chart looks a lot like Yelp. Don't you think? It is up also today by 2.5% as I write.

Most investors think they have missed the boat after a stock gaps up. This is generally wrong thinking; A gap up on above average volume really tells us that the big institutions want to own the stock in a big way.

Facebook Daily Chart

Facebook has a 20% allocation in the Core Equities Folio.