The Professionals?

Feeling mauled by the seemingly undying bear market? The S&P 500 is down -44.4% for the year.

Take a look at the year-to-date performance for some biggest of the big-name investors and consider yourself in good company:

* Warren Buffett (Berkshire Hathaway): -43%

* Ken Hebner (CMG Focus Fund) -56%

* Harry Lange (Fidelity Magellan): -59%

* Bill Miller (Legg Mason Value Trust) -50%

* Ken Griffin (Citadel): -44%

* Carl Icahn (Icahn Enterprises): -81%

* T. Boone Pickens: Down $2 billion since July

* Kirk Kerkorian: Down $693 million on his Ford shares alone

These results suggest that “a bear market gets everyone” — even Wall Street legends.

The SGM portfolio has gained 40.1% YTD.

Returns for the week ending 11/21/08

Strategic Growth Model (SGM) portfolio, past…
1 week: +5.2%
26 weeks: +27.6%
52 weeks +51.7%

Value of $10,000 invested at inception: $58,414

SGM portfolio is on a SELL signal, NEXT week’s holdings:
1/2 of funds in RWM
1/2 of funds in CASH

A Photo Album of Bear Markets

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The current bear market has moved into first place for the deepest decline since the inception of the S&P 500 in 1957. Although the ultimate severity of today's bear market is unknown, the rate of decline has been faster and deeper than the other post 1950 declines. At this point in time (about 300 days into the bear market) all the other bear markets were only about halfway to their ultimate bottom.

Returns for the week ending 11/14/08

Strategic Growth Model (SGM) portfolio, past…
1 week: +4.6%
26 weeks: +24.0%
52 weeks +43.8%

Value of $10,000 invested at inception: $55,553

SGM portfolio is on a SELL signal, NEXT week’s holdings:
1/2 of funds in RWM
1/2 of funds in CASH

Returns for the week ending 11/7/08

Strategic Growth Model (SGM) Portfolio, past…
1 week: +2.8%
26 weeks: +23.1%
52 weeks: +37.0%

Value of $10,000 invested at inception: $53,135

SGM portfolio is on a SELL signal, NEXT week’s holdings:
1/2 of funds in RWM
1/2 of funds in CASH

Live Test - Performance Summary

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The Strategic Growth Model (SGM) portfolio is performing well during these adverse market conditions. It has generated 60% in excess returns over the past 52 weeks compared to the market and it is showing no correlation to the market trend.

Shock-tober!!!

The Strategic Growth Model (SGM) portfolio was UP 16.5% during the month of October. Let's look at how some of the market indices fared...

EQUITIES:

• October 2008 was the most volatile in the 80-year history of the S.& P. 500. (see NYT chart, above)

• The Dow dropped 14% drop over the past four weeks — the biggest October decline since 1987, when the crash sent markets down 23% for the month. The S&P 500 was down 17%, and Nasdaq fell 18%. This ranked as the 15th worst monthly decline for the Dow Industrials since 1900.

• Compare 3 recent SPX Bear Markets: -46% from October 2007; Compare that with 1973-74 down 48% over 23 months. The 2000-03 bear was 49 percent over nearly 3 years.

• The S&P 500 had the most volatile month since November 1929 (1% moves higher or lower).

• Consider days with 4% moves up or down: None from 2003 through 2007; Three throughout the 1950s and two in the 1960s. October 2008 - 9 days with four percent plus or minus. That edges out September 1932’s record of 8. (NYT)