Model Shadow Stock Portfolio Up 66%, as Market Move Mystifies Pundits

The Model Shadow Stock Portfolio continues to do well in 2009—and if the portfolio continues to hold up, it will rival the year 2003 as our best year ever.

The Model Shadow Stock Portfolio is up 66.6% as of the end of August, compared to a positive 15.0% return for the S&P 500 (as measured by the Vanguard 500 Index fund). The long-term results and comparisons to other indexes can be seen in Table 1.

Despite this performance, we still have not recouped all the losses from 2008. It will probably be awhile before the Model Shadow Stock Portfolio and the general market completely recover and the purple line in Figure 1 reaches a new high.

Figure 1. Model Shadow Stock Portfolio vs. Benchmarks (Through 8/31/2009)

The positive movement of the stock market this year has already mystified many pundits.

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