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

by James B. Cloonan

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.

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James B. Cloonan is founder and chairman of AAII.
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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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→ James B. Cloonan is founder and chairman of AAII.

Discussion

I have just joined aaii, I received the member package.I am a bit confused with the model fund portfolio,as it is not the same as the portfolio on line. Also is the nearest local chapter to me being in Saginaw mi 48602, the one in Levonia mi. Thanks Norm jones jonesfm10@aol.com

posted over 2 years ago by Norman from Michigan

October 2009 Issue

Stock Screens
Finding Value Among the "Lows": The Walter J. Schloss Approach
The name Walter J. Schloss means little to the average investor. But this Benjamin Graham disciple learned his lessons well: From 1956 to 2000, his investment fund earned 15.7% versus the market’s 11.2%, and Warren Buffett has called him a "super" investor. A focus on the elements that drive the Schloss investment philosophy.

Stock Screens
Adapting a Graham Disciple's Approach: AAII's Walter J. Schloss Screen
How can individual investors implement the Walter J. Schloss approach? A look at AAII's stock screen based on Schloss' stock selection process.

The First Cut
Stocks on the Move With Price Momentum
A starting point for investors. This issue's focus is on finding stocks with improving relative strength percentage rankings, and the highest prices as a percentage of their 52-week highs.

Features
The Individual Investor's Guide to Exchange-Traded Funds: 2009
Our annual survey covers over 750 stock and bond exchange-traded funds, plus information on how they work and what you need to know about investing in them.

Hot Links
Web Sites for Exchange-Traded Funds
You can get up-to-date market and trading information on exchange-traded funds from several comprehensive financial Web sites, as well as the Web sites of the ETF marketers and sponsors.

Offbeat Offerings
I Savings Bonds
An investor reference for products that are not your typical offering. This issue's focus is on I Savings Bonds--government bonds that pay both a fixed interest rate and an adjustable interest rate that corresponds with the U.S. Consumer Price Index (CPI).

AAII Model Portfolios
Model Shadow Stock Portfolio Up 66%, as Market Move Mystifies Pundits
The Model Shadow Stock Portfolio is on its way to one of its best years ever--up 66.6% through the end of August compared to 15% for the S&P 500. But the portfolio still has not recouped all of its 2008 losses. A good contrarian indicator: many analysts say the market can't possibly go higher.

Departments
Briefly Noted

Briefly Noted

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