The top-6 Rebound Strategy Mindy candidates are doing rather nicely. Since 5th Feb, the JSE ALSH has risen 5.65% versus this portfolio which has risen 7.97%
We heard from some PRO subscribers that took out warrants and SSF's on some of these shares on the first B-signal and they are really smiling. Some investors used this opportunity to start their RiskCurves 5-share BLUECHIP portfolios with BIL, IMP and SOL. We were lacking gold exposure ourselves, since gold shares never seem to appear in any of our strategy screens (too expensive) so we loaded up on ANGGOLD to fix this and are very satisfied with the return in such a short period.
You will note a lot of resources shares listed at the top. Three of them are from our BLUECHIP portfolio, namely BIL, IMP and SOL, so this could be a nice time to load up on these when the trough turns.
As we think Mindy's ground zero is just around the corner, here are the "Rebound Strategy" share picks. This strategy picks the biggest shares that have fallen the hardest since Peak Larry on the 11th January 2010.
Click HERE to download the spreadsheet with the full details of the two "Rebound" model portfolios created by us in the last two large troughs. All shares are shown together with portfolio standard deviations, sharp ratios and dividends.
Well we have all been waiting with baited breath to see how our diversified portfolio of "rebound" shares fared since hasty inception after that famous 7-to-1 decline-to-advances ratio event on 6th July. And the verdict is "Bloody marvelous!" But look - we do conceed that calling that bottom helped a LOT in the short term picture, nevertheless, mark our words we expect great things from this portfolio over time, even if you get in now as all these shares have SO MUCH recovering still to do.
Here are the portfolio performances of the original "Rebound" strategies we created as a result of our seminal "Anatomy of a Crash" research:
After a few month now it is becoming abvious that both strategy variations probably deliver the same or very similar results. We need another large stock market correction to create another set of model portfolios to test this assumption so for now we are just going to keep running these portfolios in parrallel even if they almost mirror each other. Continue reading...
In our research note "Crash Peak Recovery" on 1st June, we identified a set of diversified shares we felt were still "good to go" for the Rebound Strategy, despite a hectic market rise. We recommended waiting for some weakness and pullback to capitalise on the formation of such a portfolio. The market has come off 8.5% since then and this set of shares followed accordingly, dropping some 15%
There is a good chance that 6 Jul 2009 is a localised trough, the base from which another series of ris... Continue reading...
Here are the portfolio performances of the "Rebound" strategies we cover in the "Anatomy of a Crash" research page. These strategies capitalise on our research which pinpoints the most likely beneficiaries of a market recovery from some kind of crash or even a medium-sized sell-off. The two portfolios below were incepted in early March, close to the last big trough of the 2008 crash, but our research has shown these strategies are viable for any sort of selloff greater than 15%.