Closing the Book on July

July 2007 was the worst month I have had since July 2006. Interestingly the market began its upward movement at the end of last July. Perhaps the cycle will repeat.

As of July 31, I am up 4.3% YTD. The S&P 500 is up 3.35% YTD. The Dow is up 6.00% YTD. Honeywell leads the 30 stocks in the Dow Jones Industrial Average with a year-to-date gain of 31.4%, according to data from Dow Jones. Alcoa is second with a gain of 27.5%, followed by Caterpillar with a rise of 25.6%. Citigroup lags with a year-to-date decline of 15%. See full story at Marketwatch.

While General Motors reported a profit for the 2nd quarter, July sales show that the auto giant still faces a tough battle to remain profitable in its core North American region. Sales were down 22% in July. I am still hanging in long with GM. It is the most speculative stock in the portfolio. Look for a full report on GM pros and cons in this weekends blog.

Some analysts feel that investors have overreacted to AIG's exposure to the subprime market. Shares of AIG fell over 8% in July. AIG will report earnings after the market close on Wednesday, August 8. My source indicates earnings of $1.70 per share. Average analysts surveyed estimate $1.61 per share. For the long term investor, this may be a good time to open or add to a position in AIG.

As a disclaimer: I am an amateur investor. I do have long positions in GM and AIG. One should carefully research or seek the advice of an investment professional before investing.