Don’t be a wimpy investor!
By Paul Price of Market Shadows
Market Shadows has conviction. We did not buckle in the face of technical weakness at the end of January or on the tumultuous first trading day of February.
Our Virtual Value Portfolio ended last week at $134,480 up from our Oct. 26, 2012 inception with a stake of $100,000. We remain nicely ahead of our benchmark, the S&P 500 ETF (SPY).
Daily DJIA drops of about 190, 150, and 326 points on Jan. 29, Jan. 31 and Feb. 3rd were enough to induce panic selling by many mutual fund investors. Last week had the distinction of hosting 2014’s worst and best single point moves of the new year, within three days of each other.
Scared money tends to do badly over time. Withdrawals in the week ended last Wednesday were by far the largest since the Fiscal Cliff brouhaha. Those media-induced late-2012 redemptions proved to be very costly when the market surged relentlessly higher in 2013.
I’m guessing that those who cashed out right ahead of last week’s Thursday-Friday 354 point DJIA rally will end up regretting their actions once again.
You can view all our closed-out and presently held stock positions by clicking here.
