By Paul Price of Market Shadows
Market Shadows Excelled – With a 1.36% Weekly Decline
In the land of the blind, the one-eyed man is King. Our Virtual Value Porfolio took on that role this week as we lost a modest 1.36% of our value while the DJIA, S&P 500 and Nasdaq Composite dropped from 2.35% – 3.10%.
We remain bullish despite the shaky end of week sentiment. Our original $100,000 now totals $145,058 including our 2.8% cash reserve.
The odd thing about action on Thursday and Friday was the lack of a clear trigger for the cascade. I’ve heard all sorts of theories–people needing money to pay taxes on April 15, the state of the Chinese economy, the Ukraine/Russia conflict. Nothing particularly new. In fact, a rotation out of momo stocks, which affects the Nasdaq more so than the Dow and the S&P 500, has been going on for weeks.
We ignore most of that macro garbage and select our stocks on a bottom-up basis.
Our latest buy was Honda Motor Company (HMC) which looks to be a low-risk bargain with a great valuation and a 2.35% yield.
Here's the less-than-rosy weekly performances of the three major indices…
