RCM Robinson Capital Management LLC
 
  The Robinson Report           A quick and simple weekly market performance report.
For the week of October 27, 2006

 

 


Week in review:  

  • The Markets – Prior to a fall back on Friday after the Commerce Department issued a gross domestic product reading tempered by housing market concerns, the Dow had set a new high close every day last week and in 13 of the previous 18 sessions. For the week, the Dow rose 0.73 percent to 12,090.26. The S&P climbed 0.66 percent to end at 1,377.74, and the NASDAQ gained 0.36 percent to close at 2,342.30.

  • Fed Stands Pat – At its meeting last week, the Federal Reserve stuck to its guns and left interest rates unchanged. The overnight federal funds rate has been at 5.25 percent since June 29, when the Fed ended its string of 17 consecutive increases that started in 2004 to keep inflation in check..

  • Jet Demand Helps Manufacturing Sector Soar – The Commerce Department reported last week that durable goods orders climbed 7.8 percent in September, with most of that growth coming from a 183.2 percent increase in orders for commercial planes. Excluding transportation, durable goods grew just 0.1 percent. The gain is the biggest since June 2000.

  • Many Up Months – Eight of the first nine months in calendar year 2006 have produced a positive total return for the S&P 500. Only May (down 2.9 percent) was not an up month for the stock index this year.  The last time that eight of the first nine months during a year were up for the S&P 500 was in 1996, a year that finished with a 23.0 percent total return. Through September 30, 2006, the S&P 500 was up 8.5 percent YTD.

  • I Think I Will – Although more than six out of every eight working Americans (77 percent) believe they will continue to work in some capacity even in their retirement years, only one out of every eight currently retired Americans (12 percent) is working for pay.

  • Sticking To The Plan – The median 401(k) account balance almost doubled (up 98 percent) for employees who maintained participation (and continued to make pre-tax contributions) in their company’s plan over the 5 years from December 31, 2000 to December 31, 2005. The average 401(k) account balance was up 51 percent during the same period. The S&P 500 averaged only a +0.5 percent total return per year over the 5 years.

  • Budget Results – The U.S. government spent $1.10 for every $1.00 collected in fiscal year 2006 resulting in a $248 billion budget deficit, a $71 billion improvement over the previous fiscal year.

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ASSET CLASS RETURNS (see disclosures below)  


  


Portfolio Performance REVIEW (see disclosures below)  

 

   

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"I couldn't wait for success, so I went ahead without it." 

--Jonathan Winters

 

% change in week ending 10/27/06

S&P500

0.64

US Lg Val (Russell 1000 Value)

0.89

US Sm (Russell 2000)

0.49

Intl (EAFE)

1.34

Intl Sm (EAFE Small)

1.21

3-5yr Govt (Bloomberg)

0.31

 

 

 

 

% change

Bloomberg Silicon Valley Index

Last 12 months

14.91  

YTD

5.39  

Last 5 sessions

0.35  

 

 

% change

Global Hedge Fund Index  (10/25/06)

Last 12 months

9.35

YTD

5.77

Last 5 days

0.48

 

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Tel: 1.415.771.9421
Fax: 415.762.1980
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Weekly Market Review by OppenheimerFunds

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Portfolio Performance is calculated by the Bloomberg Professional System on a total return basis. Current portfolio allocations

 

Important Performance Disclosure Information

Asset Class returns are represented by market indexes that are unmanaged baskets of securities. Investors cannot directly invest in market indexes. Foreign securities involve additional risks, including foreign currency changes, political risks, foreign taxes and different methods of accounting and financial reporting.

Portfolio Performance is the total return of seven unique asset allocation strategies that seek to fit the distinct needs of different investor goals, risk tolerance levels and investment time horizon. Each portfolio contains up to 16 individual funds totaling over 4000 securities, managed by OppenheimerFunds. The portfolios are designed to create efficient diversification through the selection of mutual funds that may have a  low correlation between asset classes. The purpose of these tables and charts is for you to follow specific market indexes, observe asset class rotation and to compare actual portfolio returns net of management fees. Asset allocation strategy is available here.   


Performance quoted is past performance and cannot guarantee comparable future results. Performance figures reflect reinvestment of distributions and changes in net asset value (NAV). Investment return and principal value will vary so that you may have a gain or loss when you sell shares. The contingent deferred sales charge (CDSC) on Class C is 1%. No CDSC will be imposed on redemptions of Class C shares following one year from date shares were purchased. Performance shown does not include applicable CDSC, which would have reduced performance.

 

Before investing in any of the OppenheimerFunds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. The fund's prospectus contains this and other information about the fund. Read prospectuses carefully before investing.      

S&P 500 - Standard & Poor's 500 Index (not including dividends) - generally considered a U.S. Large Growth company market index.

Russell 1000 Value Index (US Lg Val) - generally considered a U.S. Large Value company market index.

Russell 2000 Index (US Sm)- generally considered a U.S. Small company market index.

EAFE - EAFE Index (Intl) (not including dividends) Europe, Australia, Far East and generally considered a large company international market index.

EAFE Sm - EAFE Small Index (Intl Sm) (not including dividends) Europe, Australia, Far East and generally considered a small company international market index.

Bloomberg Silicon Valley Index - market index of high tech companies located in the Silicon Valley area. 
Global Hedge Fund Index - representative of the overall composition of the hedge fund universe. It is comprised of eight strategies: 
convertible arbitrage, merger arbitrage, equity hedge, equity market neutral, relative value arbitrage, event driven, distressed securities, and macro. The strategies are asset weighted based on the distribution of assets in the hedge fund industry. See hedge fund risks. 

3-5yr Treas. - Bloomberg U.S. Government Treasuries 3-5 year maturities index and generally considered a intermediate maturity U.S. Government Note index.

Asset Class - a group of investments that share similar risk and return characteristics.

All investments involve risk, including loss of principal. Foreign securities involve additional risks, including foreign currency changes, political changes, foreign taxes, and different methods of accounting and financial reporting. The foregoing has been prepared solely for informational purposes, and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy.  

The information contained herein is based on sources and data believed reliable, but is not guaranteed. Advisory services offered through RCM Robinson Capital Management LLC, SEC Registered Investment Advisor. Securities offered through Securities America, Inc., Member FINRA/SIPC. Douglas C. Robinson, Registered Representative. RCM Robinson Capital Management LLC and Securities America, Inc. are separate and unaffiliated.

 
RCM Robinson Capital Management LLC, Securities America, Inc, 27 Reed Boulevard, Mill Valley, CA 94941

(phone) 415-771-9421       (fax) 415-762-1980