THE STALWARTS PORTFOLIO.

by Dr. Bart DiLiddo Friday, 05/16/2008
I have said it before and I'll say it again, "Our subscribers are our best sales people." Thank you, thank you, thank you for the tremendous support you gave us at the Las Vegas Money Show this week. I was delighted to meet so many new subscribers and visit with so many old-timers.

One gentleman, a newcomer, stood up at our booth and said he made $20,000 during his trial period. Another gentleman told me he began using the "Money Machine" strategy since this rally started and he's up over 20%. Another old-timer is a walking testimonial of what can be done with VectorVest. He quit his job 14 years ago and has been living very well on his investment profits, thank you. He made a presentation to an IBD User Group some time ago and converted most of them to VectorVest users. How can you beat that?

It was a special pleasure to meet and visit with the Groves sisters, Daryl and Pam. They were the Second Place Winners of our 2003 Bear Market Beater contest and created the Marathon strategy, which I wrote about on April 25, 2003. Marathon is an excellent strategy and embodies the precise concepts one would want in building a Bear Beater. "It simply buys rising stocks in rising Industry Groups." It worked well five years ago, but it hasn't worked that well in this market. The question is why?

My guess is because this market is so much more focused. Just open Stock Viewer and you'll see that most of the top ranked stocks are in the Steel, Coal, Fertilizer, Oil, Mining and Shipping Industries. If you have been buying stocks in these groups, you should be doing very well. Yes, but high VST stocks aren't restricted to the best performing Industry Groups and that's what I want.

Enter Stalwarts. The RT*CI criteria is all about performance and nothing but performance. As of last night, Patriot Coal, PCX, had the highest RT*CI rank of all the stocks in the database. I own it and it's up 50% since the April 3rd C/Up signal. Currently, it has the best combination of short-term and long-term performance of all the stocks in our database. In the same vein, Steel(Basic), Energy(Coal) and Chemical(Fertilizers) were the top three Industry Groups last night ranked by RT*CI. Look at the 5-Year, Weekly graphs of these groups and you will see why.

As I said last week, Stalwarts finds the best performing stocks in the best performing Industry Groups. It's performed well in recent back-tests and it's given me some super winners over the past few months. So why not give it a shot? Starting tonight we will have a "Stalwarts - 2008" Portfolio in the VSA Model Portfolio Group of Portfolio Manager. It will be a $100,000, real money, 10 stock portfolio. Of course, it will be empty when you see it tonight, but we will begin filling positions sometime next week. I'm not telling you exactly when because the designated stocks could be marked-up substantially before we wanted to buy them.

Once the 10 positions have been filled, we will manage the portfolio as illustrated in last week's "Strategy of the Week." Portfolio management will be very easy to do since we'll examine the portfolio for trades only on weekends and make our trades only at Monday morning opens. My only concern with this little experiment is that of "moving-the-market." It has happened before, so be careful if you want to try to replicate The Stalwarts Portfolio.

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