Shadow Stock Portfolio: Still Up for the Year After Market Correction

    by James B. Cloonan

    The stock market adjustment that began in late May hurt the Model Shadow Stock Portfolio, but as of May 31 it was still up 11.4% for the year as compared to 2.5% for the Vanguard 500 Index fund (VFINX). Figure 1 shows the comparisons for other periods and indexes. For well over a year now pundits have been saying the time for small cap and value is about to end, and we should all switch to large-cap growth. However, large-cap growth year-to-date through May 31 is down 0.4%, as measured by Vanguard’s Growth Index fund (VIGRX, not shown).

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    → James B. Cloonan