Rebounce
September 10th 2006 13:22
What goes up must come down. Is it the same as if it's gone down, it will bounce? Yes, if elasticity is at play and thats what most market participant would say but its all rubbish according to Marcus Padley of the daily stockmarket newsletter, Marcus Today. He believes regardless whether the market or a particular stock is north or south, it's all immaterial as it had already happened, therefore it doesn't matter at all and all that matters is to expect the unexpected of the unknown tomorrow. Be a salmon, don't look back and find where the money is.
So far the Portfolio 1.5 - EW has been a kind of a salmon, going opposite of the market benchmark most of the time and I have a strong suspicion that this portfolio might be negatively correleted to the market. Contratrian strategy? Certainly too early to tell.
The Portfolio closed higher on Friday bouncing back from the lows days before and ended with a value of 10.48%, 2 points higher than the last high of 10.46% on 4th September. As for the ASX S&P 200 benchmark index, it closed slightly lower by 0.2%. There are several stocks in the portfolio that have been performing quite well but were offsetted by falling stocks or those still struggling to over thier purchase and first round transaction cost. Overall the portfolio is making an unrealised profit of $3,482 after first round transaction costs.
Unlike most academic finance research on equity strategies where transaction costs are negated for the sake of simplicity, the strategy observed here takes into account of reality, where there are transaction costs that eats up profits. Just like Ali G's famous line; "KEEP IT REAL!"
So far the Portfolio 1.5 - EW has been a kind of a salmon, going opposite of the market benchmark most of the time and I have a strong suspicion that this portfolio might be negatively correleted to the market. Contratrian strategy? Certainly too early to tell.
The Portfolio closed higher on Friday bouncing back from the lows days before and ended with a value of 10.48%, 2 points higher than the last high of 10.46% on 4th September. As for the ASX S&P 200 benchmark index, it closed slightly lower by 0.2%. There are several stocks in the portfolio that have been performing quite well but were offsetted by falling stocks or those still struggling to over thier purchase and first round transaction cost. Overall the portfolio is making an unrealised profit of $3,482 after first round transaction costs.
Unlike most academic finance research on equity strategies where transaction costs are negated for the sake of simplicity, the strategy observed here takes into account of reality, where there are transaction costs that eats up profits. Just like Ali G's famous line; "KEEP IT REAL!"
The winner stocks are highlighted in yellow.
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