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%.
The TRI curves of each of these two very similar strategies are shown below:
We note that these strategies are just as sensitive to pullbacks and consolidations (as we are now experiencing) as they are to the rebounds that spawned them, so the investor will need some nerves with these strategies. However you can see above they are still outperforming the ALSH nicely, and have respectable SHARPE ratios (Avg growth divided by standard deviation of growth) and the CAGR's still look mighty impressive. We fully expect these portfolios to resume their mighty upward momentum when the market makes its next move up.
NOTE : The current pullback may well be presenting opportunity for the investor who missed the initial boat to pick up on these portfolios. Remember these shares have fallen massively since the May 2008 peak and even though they have rebounded somewhat sharply they still have a long way to go to recover their full values. Please read the "Crash-Peak Recovery Strategy" to fully understand the dynamics behind this strategy before commiting your funds.