It was the best of weeks. It was the worst of weeks.
By Paul Price of Market Shadows
From Monday through Wednesday we were hitting new records and feeling great. Thursday, and especially Friday, reversed course. By the end of the week, both the DJIA and Nasdaq were back in negative territory YTD.
The S & P 500 managed to hang on for a positive weekly and YTD 2014 close.
Our Virtual Value Portfolio continues to outperform. It is now ahead of the S&P 500 by more than 5% since the end of 2013. We used the late week sell-off to put our remaining cash reserves back to work in two new names, Diamond Offshore (DO) and Ensco plc (ESV).
Our original $100,000 stake has grown to just over $147,000 in a little more than 17 months. That's a 32.7% compounded rate of return since we started on October 26, 2012. Despite Friday's finish we hold 'Great Expectations' for the future.
