5 Year Portfolio Performance Study
This study demonstrates the power of the SmartStops risk management strategy when
applied to a portfolio of widely held stocks over a 5 year period.
The study runs from January 2005 through December 2009, a very challenging time
for investors during which many indexed and managed funds lost value.
Study Highlights
- Buy & Hold returned an 18.3% Loss. SmartStops returned
a 9.1% Gain.
- On a $100,000 initial investment, SmartStops users earned an additional
$27,382.
- SmartStops users spent significant time safely in cash reducing market risk.
Study Description & Criteria
The study assumes an initial investment of $100,000 spread evenly across ten stocks
purchased at the closing price on January 3, 2005 and sold on December 31, 2009.
The SmartStops approach follows the SmartStops short term exit signals and assumes
that upon hitting an exit trigger, a position is fully liquidated going to cash.
The funds remain in cash until the equity triggers a SmartStops Reentry Alert, at
which time all proceeds generated from the previous sale of the equity are reinvested
in that same equity. The study does not account for potential interest earned or
dividends lost during the period of time that that funds are in cash.
