Shadow Stock Portfolio Performance Reflects Market’s Volatility

by James B. Cloonan

Shadow Stock Portfolio Performance Reflects Market’s Volatility Splash image

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.

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.

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James B. Cloonan is founder and chairman of AAII.


Raymond from Florida posted over 3 years ago:

change state

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