Many savvy investor &.traders read Barron's magazine each week. They're running a promotion right now that's pretty attractive. Some articles are free, some are locked if not a subscriber.
This week they selected their top 10 stock picks for 2016....and also looked back to how their top 10 picks for 2015 have performed., which turns out not so well, with a net loss of 6% for the year in an equal weighted portfolio of the 10 stocks.
Here then is how that same portfolio would have fared using M11, a top 2 sort and our default stops.
Yes, there would have been some slippage along the way because some of these stocks had really bad days that would have blown through our stops and commissions are not included.
Nevertheless, M11 is designed as a starting point, not a final solution and even after handicapping our model by 20% for the vagaries of the market an 80% gain looks a lot better than -6%.
I've also loaded up Barron;s picks for 2016 on the M11 platform and set a top 2 sort.
We'll check back each quarter so see how M11 is performing relative to Barron's passive strategy. Past performance is no guarantee of future results but this looks a case where a $ 50,000 portfolio of Barron's top rated stocks would have produced somewhere in the neighborhood of a $40,000 return using M11 as opposed to a loss of 6%,
Hint for accumulation: buy on a 3 day low for the SPY or when at lower oversold levels per VDX.
This is why I believe in technical analysis and active money management.