Sometimes the markets really like to make a monkey out of me. Last week, I guessed that the markets would stew and churn in place until this week (or the Fed meeting) tomorrow. Well, in fact the markets blasted higher and all but erased the surprising decline of the previous week. In fact, almost all of our models made a new high for the year last week including the new mutual fund. What gives? Well there are quite of few bits of information we can derive from the market action so far in 2006.

We are still seeing some incredible strength in the New Power (alternative) energy stocks. YTD, our model is now up over 10% net of fees not including a whopper of a day today. I’m not sure what’s driving the recent price advance but my assumptions about this sector are playing out nicely. This is a classic and historic convergence of events that is likely to push the few available publicly traded alternative energy stocks much further than any anticipate. I want to formally discourage anyone from reallocating money from existing conservative strategies to this highly aggressive strategy just to get a piece of the action. If anyone would like to discuss a new investment in the New Power strategy, I’m open. If you want to discuss a reallocation based on recent return differences, I’m going to be resistant unless the change is really appropriate for your personal situation.