What's with this market rally?

All the market pundits are wondering just what is driving this market. It is common to look at the markets most recent movement and look for a piece of news that just might explain a rally or a decline.

We would suggest that maybe it is not new factors that can explain the recent rally but what the market has missed for the past +7 months. The S&P 500 is at the same level today that it was in late April, no gain. But during that seven months of backing and filling for the market GAAP earnings for the S&P 500 have risen +17%.

For the year 2010, it is expected earnings will top $74, a 45% increase over 2009. But the market has risen just under 10%.

Maybe the answer for the market’s recent strength is simply that prices are starting to catch up with earnings growth!
Whatever the reason, sit back and enjoy the rally.

Portfolio Options and Fees

Dear Clients and Potential Clients:

In order for a financial adviser to help you position your assets and navigate through this tough economic and market environment, it takes a team of experts with varied talents and track records. Moreover, this team must eliminate as many conflicts of interest, such as earning commissions on trades, to avoid biased recommendations. In my opinion, a financial adviser or asset manager should be on the same side of the fence as the investor, which means when the account decreases in value the asset manager should get a pay cut; likewise, when the asset manager does a great job at increasing account values they should get a pay raise. This is why Humboldt Financial, LLC provides investment advice on a “fee-only” basis and has an incentive to continuously improve the investment selection process.

Here are the two platforms available to clients:

1. Fully Managed Portfolios
2. General Clients

I developed the Fully Managed Portfolios below by integrating my knowledge and experience with the expertise of equity research companies who provide daily investment advice for bull, bear, and neutral market conditions.
Here are the seven managed portfolios to choose from:

• Total Return Portfolio (PFF004) – We seek a positive return each year regardless of the market direction (up, down, or sideways). This portfolio will use ETFs (long, but no ultra ETFs) and can be 100% long to 100% cash or a combination in between. Suitable for IRAs. Conservative Risk.

• Moderate Portfolio w/ Risk Management (PFF012) – This portfolio will use defensive cash positions, ETFs (long and limited inverse positions, but no ultra ETFs). Suitable for IRAs. Medium Risk.

• Market Plus w/ Risk Management (FAA006) – This is very similar to the Moderate Portfolio, but includes, ultra ETFs, long stock positions with covered calls (options). This account trades more frequently and its objective is to beat the S&P 500. Suitable for IRAs. High Risk.

• Paired Trades (PFF022, FAA004) – This account uses long and short trades paired against each other. Margin is required to short ETFs and stocks, but we will do our best not to be leveraged above the initial investment. Medium Risk.

• Active & Leveraged Portfolio (PFF020) – Active trading of ETFs and stocks (long and short), options, and leverage with margin for maximum growth. High Risk.

• Humboldt Green (HF0215) – For the socially conscientious investor, this account will invest in mutual funds, ETFs, options, and stocks that are considered socially responsible. Suitable for IRAs. Medium Risk.

• Satellite – $50,000 minimum investment. This option is good if you want to incorporate higher risk into any of the above portfolios to create a more diversified “core & explore” allocation with less volatility and added return. This is a sophisticated and complex portfolio developed by money managers who manage money managers. This account is held and billed out of house. Suitable for IRAs. High Risk.

I may add an Options-Only account and Custom Account in the future.


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Fees for Assets Under Management**+

$0 - $24,999
$60/hr for individual investment advice

$25,000 - $49,999
$100 per month

$50,000 - $99,999
2.25% per year

$100,000 - $249,999
2.00% per year

$250,000 - $499,999
1.75% per year

$500,000 - $999,999
1.50% per year

$1,000,000 - $2,499,999
1.25% per year

$2,500,000 - $4,999,999
1.00% per year

Above $5,000,000
0.75% per year

** The above fees do not include trade commissions. We receive NO part of these commissions. Even though these commissions are slightly higher than discount houses, the services offered at TradePMR will more than compensate for the commissions.
+ The above fees exclude the Satellite portfolio, which is managed and billed by another Registered Investment Adviser.

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General Clients – $75 per month paid in advance at $300 for four months or $100 monthly.
These options are for the trader who has the time and interest to place their own trades and would like access to our trade alerts on the BUY and SELL side for ONE of the above portfolios (excluding the Satellite). You can access trades to additional portfolios for $50 per portfolio per month. Trade alerts arrive via email within two hours.

Security – Humboldt Financial, LLC does not hold your money, nor can we access it. We can only execute your trades through TradePMR. Your account statements and all reporting will come from TradePMR. The SIPC insurance on general accounts also fall under TradePMR as does the additional account insurance they have through Lloyd’s of London.


Let me know which accounts you are interested in and send feedback if you have comments or questions.