It’s always a lively discussion when Ken Winans, president of Winans International, discusses the markets, the economy and politics. We recapped the 3rd Quarter of 2010 results and found some surprising results.
The Top 4 Dow Jones Industrial Average stocks were: 1) Caterpillar 2) DuPont 3) Boeing and 4) McDonalds. Three of four are industrial stocks leading the Dow. The irony, as Ken points out, is that many Americans bemoan the decline in American manufacturing, yet coming out of this recession, it is manufacturing that is leading the way.
All three major stock indices were up 11% for the quarter, but only 2% for the year. September was the best September for the Dow in 71 years, since 1939.
The biggest gainer for the year is a lesser known index, the Standard & Poor’s 400 which was up 9.5% for the year, compared to 2% for the other averages.
Preferred stocks out performed common stocks, year-to-date. The Winans Internatioanl Preferred Stock Index—one of the leading benchmarks in this area—is up 22% without dividends. Investors in this Index are receiving 8%-8.5% dividends in addition to the Index price appreciation.
Ken is the fund manager for an Electronically Traded Fund (ETF), the Winans Long Short Fund (Symbol: ETFMX). He honestly admitted the ETF has been “bloodied” this year—down 12%. He cites some overly aggressive short selling earlier this year as the cause.
Listen to the entire market wrap up below: