First quarter 2012 returns are in as follows:
While the S&P 500 returned 12.6% (total return)
RMHI Growth accounts returned 18.31%
RMHI Moderate Growth returned 16.76%
RMHI returns are net of all fee’s and expenses.
Quick comment: While I’m very pleased with these returns the RMHI model performance exceeded our client returns due to accounts having diversified positions in Gold and in some cases a higher level of cash than normal. Portfolios diversified from equities lagged in performance due to the lack of upward price momentum in gold and bonds. Realizing that the government may not be in support of QE 3, we’ve sold our gold positions and would prefer to own cash in lieu of metals or bonds.
All market models remain in Bullish mode where any form of market weakness is being fought by aggressive buyers. While we do see some signs of incoming economic weakness (today’s poor job creation stats for example) the weakness has not translated to declining equity prices.