Some of you know that I have been very interested in investments, esp. stock markets. I have also developed a system. Using this system, my portfolio went up by ~700% in 2009 and ~100% in 2010. 2009 and 2010 were 2 bull market years. As the saying goes, even a monkey can make money in a bull market. I had been wondering how my system would fare in a bear market. Well, be careful for what you wish for, you may actually get it. Not that I really want to test my theory, but 2011 has been a very choppy year with many features of a bear market. So how has my portfolio been doing? The following comparison gives me the confidence that my system appears to be a solid one. I have also done some preliminary research to show that my approach would fare better than S&P 500 index (The investment goal for most, if not all, fund managers is to “beat the market”), if you use to directly trade SP500 ETF. (I will publish this research later, when it’s completed.)
How are the market indexes, stock-fund managers and my portfolio doing so far this year? Let’s look at some numbers (Range spans from 1st trading day of 2011 until 12/9/2011).
- My portfolio is up +32%;
- SP500 (^GSPC) has lost 16.78 or -1.3%;
- DJIA (^DJI) has gained 513.51 (+4.4%).
- Nasdaq Composite (^XIC) has gained 44.67 (1.66%)
- Only 23% of stock-fund managers did better than S&P, i.e., 77% of stock-fund managers are in the red*.
