Shadow Stock Portfolio Performance Reflects Market’s Volatility
The Model Shadow Stock Portfolio retreated during the four-month pullback in the stock market.
The portfolio is now up just 1.7% year-to-date (August 31, 2010), but that is somewhat better than the S&P 500 which, as measured by the Vanguard 500 Index fund, is down 4.7% for the same period. As I write this, a September rally seems to be underway, but there has been so much fluctuation during 2010 that it may not last until you read this. Complete performance data can be viewed in Figure 1 and Table 2.
In this article
- Setting a Liquidity Level
- Removing a Sell Rule
- Portfolio Changes
- Explanation of Notes
- Purchase and Sales Rules
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The current holdings are shown in Table 1. As shown in Figure 2, the number of stocks passing the initial screen increased to 21. Many of those were already in the portfolio and, as usual, the final decision on a new purchase was based on liquidity and price-to-book ratios.
Setting a Liquidity Level
Those of you who use AAII’s Stock Investor Pro database and stock research program and run the included screen for the Shadow Stock Portfolio will always find more stocks passing than the number in my initial
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