Market Weakness Hits Model Shadow Stock Portfolio

by James B. Cloonan

Market Weakness Hits Model Shadow Stock Portfolio Splash image

The market weakness continues, but it has stopped hitting small-cap and value stocks more than the general market. In fact, the Model Shadow Stock Portfolio is now performing better than the overall market, with a year-to-date return of –3.1% versus –9.1% for the Vanguard S&P 500 Index Fund (VFINX) and –8.7% for the Vanguard Small Cap Index (NAESX), as of the end of February.

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At the end of November we thought the Model Shadow Stock Portfolio would finish in the black for the year, but December proved very weak and it in fact finished 2007 in negative territory, down 1.8%.

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