Techs have been down for much of the year, especially in H1. But since September they’ve rallied and the Nasdaq has beaten the Dow and the S&P in gains almost every week. However, the October rally gets a little tired today as profit-takers take some money off the table to leave the indices really unchanged from yesterday’s session. Does this mean that the ghost of October has finally been put to rest in 2006? I doubt it but only time will tell. For now, Wall Street cheers for October 2006.
A folio stalwart makes the headlines today. Although PG results exceed expectations, and management increases guidance for fiscal 2007, investors still frown on the guidance for fiscal Q2, which ends in December. Wall Street can be so myopic sometimes! Why fret over “organic” growth, which excludes acquisitions, divestitures and foreign exchange effects, when the firm is in the midst of a core product reconfiguration that should boost organic top-line?
Look organic growth matters but I believe the integration of Gillette and unit growth in emerging markets will also do wonders for PG’s bottom line in fiscal 2007. PG is a well-run firm so management deserves the benefit of the doubt on organic growth.
For the month the folio hangs in there with the market. It manages to beat the S&P. Had I bought ADBE much earlier than last week, the folio would probably have rallied as much as the Nasdaq did over the month. Nevertheless, it’s a good workout for the folio in October. Here are the stats for returns for October followed by weekly returns:
| Index | October | Week1 | Week2 | Week3 | Week4 |
| Nasdaq | 4.79% | 1.84% | 2.49% | -0.64% | 0.36% |
| Dow | 3.44% | 1.47% | 0.93% | 0.35% | 0.73% |
| Worst-known | 3.37% | 0.40% | 1.97% | 0.75% | 3.59% |
| S&P | 3.15% | 1.03% | 1.19% | 0.22% | 0.64% |
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