Published December 8, 2017
Our TradeGuru investment service has been delivering massive gains for subscribers since the latest bullish period began in early 2016. With growth stocks leading the market upward, our growth-oriented GuruFolio (labeled Folio A on the site) has delivered gains of over +45% this year after a +35% year in 2016.
The TradeGuru delivers two distinct portfolios – one filled with growth stocks; one with value stocks. Each portfolio has 10 stocks which are rebalanced every four weeks. In a typical rebalance period, about half the positions will change. The chart below shows the performance of the TradeGuru over the past 15+ years.
The service is long-only meaning that it is offering the portfolio of stocks regardless of broad market conditions. With a basic bear market filter, you might do even better than the results shown above (by avoiding the weak bearish periods of 2008 and 2011).
Tech stocks began the week with a continuation of their recent profit-taking slump. The Nasdaq gave up -1% while the broad market held flat as most sectors sported solid gains. Tuesday it was the small-cap Russell 2000’s turn to head lower with investors appearing the “sell the news” as the tax reform bill heads to reconciliation between the Senate and House versions. Small-cap stocks have rallied on prospects for lower corporate tax rates. The small-cap index fell -1% while broad market’s slide was limited to -0.4%. Heavy -2% losses in Asian markets failed to roll over to U.S. markets with Wednesday providing a flat market on little news. Thursday found stocks on solid footing gaining +0.3% with Congress once again in focus, this time due to efforts to pass short-term spending bills to avoid a government shutdown. Asian markets bounced back Friday while the monthly jobs report came in strong. Stock indexes opened well and held firm to modest gains.
Stocks offered a mixed week with tax reform moving to the background and investors heading to year-end. The S&P 500 (SPY) added +0.40% while the Nasdaq (QQQ) was flat at a +0.14% weekly tally. Small-caps (IWM) fared worse losing -1.05% on the week.
Warm wishes and until next week.