Honeys blagojevich breaks major Brinker boo-boo news!
Honey stated the following:
Who would actually subscribe to a newsletter called Marketimer if they knew going in that it had lost over 40% on it stock portfolios the year before?
Based on information that I have archived from Brinker's website over time, I am able to compute the dollar values that the portfolios lost last year. The Vanguard Total Stock Market Fund (VTSMX) and the Vanguard S&P 500 fund (VFINX) both lost less than Brinker's Model Portfolio I and Portfolio II. Portfolio III did better, but it is a balanced portfolio.
PORTFOLIO I DOLLAR VALUE
December 31, 2007: $283,874
December 31, 2008: $171,153
Loss for year: $112,721
Loss from October 2007 [high of $302,561]: $131,408
PORTFOLIO II DOLLAR VALUE
December 31, 2007: $229,074
December 31, 2008: $143,294
Loss for year: $85,780
Loss from October 2007 [high of $241,994]: $98,700
PORTFOLIO III DOLLAR VALUE
December 31, 2007: $213,493
December 31, 2008: $162,563
Loss for year: $50,930
Loss from October 2007 [high of $219,263]: $56,700
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EQ asks several questions:
1) Honey, you said Based on information that I have archived from Brinker's website over time, I am able to compute the dollar values that the portfolios lost last year. Could you give us a bit more insight into the processes you utilised?
2) Honey, you said Who would actually subscribe to a newsletter called Marketimer if they knew going in that it had lost over 40% on it stock portfolios the year before?
Honey, did Kirk help you on your lost over 40% computation? The reason I ask is that (using YOUR figures) I am unable to calculate any losses exceeding 40%.
Here are my computations (based on YOUR figures:
PORTFOLIO I DOLLAR VALUE
December 31, 2007: $283,874
December 31, 2008: $171,153
Loss for year: $112,721
Percentage Loss for Year: -39.71%
PORTFOLIO II DOLLAR VALUE
December 31, 2007: $229,074
December 31, 2008: $143,294
Loss for year: $85,780
Loss from October 2007 [high of $241,994]: $98,700
Percentage Loss for Year: -37.45%
PORTFOLIO III DOLLAR VALUE
December 31, 2007: $213,493
December 31, 2008: $162,563
Loss for year: $50,930
Loss from October 2007 [high of $219,263]: $56,700
Percentage Loss for Year: -23.86%
Conclusion: (based on YOUR figures) ALL of Bobs portfolios came in with LESS than a 40% loss, and are fairly in-line with and reflective of the state of the market during 2008.
Honey, no one wants to lose money in the market, but lets not say things that erroneously make the losses appear worse than they are.
Cheerio!
Elan |
