>>Don, I'm curious how your mechanical short picks (VL/Zacks 5) fared compared to the market indexes in today's mini crash. <<
None of the portfolios I'm tracking lost as much as the S&P lost (on a % basis). Several of the portfolios were affected by the hostile buyout offer for AMP (unfortunately including my real money portfolio - darn good thing I'm well diversified, since I got "banjoed" twice in a week!).
Here's the data:
stocks picked 4/27 - 18 stocks, VL5xZ5, fell 2.9% on Tuesday
stocks picked 6/10,6/29,7/13 (real) - *gained* 1.0% on Tuesday
gain was due to AMP, if AMP is excluded, the rest lost 1.4%
stocks picked 8/3 - *gained* 1.0% due to AMP, otherwise lost 1.3%
I think the type of stocks picked by this strategy tend to have low betas - so I'm not surprised they didn't fall as far as the market on Tuesday.
Another portfolio I'm tracking, the 20 lowest RS stocks ranked #5 by Zacks, did fall farther than the market on Tuesday, down 4.5%. However, this portfolio has been much more volatile - and up to the last week was not doing as well as the VL based portfolios. |
