Adherence to Rules Helps Model Shadow Stock Portfolio's Performance
The slide that began in May has finally been reversed at the end of August, and the entire stock market is back at its high for the year.
The Model Shadow Stock Portfolio has done particularly well recently and is now up 18.9% year-to-date, compared to 13.4% for the S&P 500 index as measured by the Vanguard 500 Index fund (VFINX). We have not gotten back to our mid-March high of +22%, but it is an above-average year—so far. The returns for longer periods can be seen in Figure 1 and Table 3.
Not much has changed in the market environment. There seems to be a gradual recovery amid a wide variety of risks. In addition, the political rhetoric has hit full volume and will continue through the election, which happily will be over when I next write about the Shadow Stock Portfolio.
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