IDEAS FROM THE TOP 3 PERFORMONG PORTFOLIOS.
Written by: Robert and Russell Markham
The Confirmed/Up (our most conservative timing) signal was given back on the 20th of May for Australia and continues to remain in place. During the Coronavirus sell down, I checked in on all the key portfolios that we track in VectorVest to see how they performed. As with any market sell down (in this case, it was severe), the returns were under pressure, but did not capitulate. That is the difference between an investor (applying risk and money management rules) and one of a buy/hold/hope investor.
Protecting your capital is one of the most important aspect of investing. If you lose your capital, you are out of the game. You will need to go and earn further money. That could entail going back to work if you are retired or selling other assets! Why take such a risk? Ensure you have a robust trading plan. Do your plans tell you when to buy, what to buy and when to sell? Have you BackTested your plan? If you are not sure when you should buy, hold, or sell… I am certain that you either have a poor trading plan or no trading plan at all.
The Trading System Viewer in Australia is an incredibly handy snapshot of the overall performance of all the portfolios we track at VectorVest. All these portfolios follow a strict trading plan. Exact rules defined for when to buy, what to buy and when to sell. Here are the trading plans in play! I want to take a closer look over the last 3 months. In fact, only 1 portfolio out of all the portfolios we track has had negative returns over the last 3 months. Several of the portfolios have returned well over 15% in the last 3 months, with the Income Portfolio returning over 65% and over 17% in the last month alone!
To check in on the performance of the portfolios we track, click on Viewers and then per the left-hand side of the screen, click on Trading System Viewer. This will break out all 14 of the portfolios being tracked. I want to concentrate on the 1 Month % column. If you click on the 1 Month % column, it will sort the returns in Ascending or Descending order. I want to ensure the sort is in Descending order. The top 3 by 1 Month % returns are as follows: The Income Portfolio, Retirement Growth and VV – Fastest Growing Stocks.
The next step is for us to note all the stocks in these 3 portfolios and put them into a WatchList to gain further insights into the stocks driving these successful portfolios. We have done this exercise via a video this week. Before I get you to check out the video, I want to note some key takeaway points in the video:
- The Earnings are rising across all those stocks on average.
- The Earnings Growth Rate remains very strong.
- Positive Net Profit Margins.
- Solid Technical Momentum.
- A WatchList is an incredibly powerful tool, but make sure you don’t forget about your trading rules of when to buy, what to buy and when to sell. This is just a snapshot in time.
Please CLICK HERE to see how easy it is to get some great investing ideas!