Sunday, February 16, 2014

Update - The IBD Top 50 Stocks Strategy

Here’s an update on the IBD Top 50 stocks investing strategies vs. $SPY

image For the week, the IBD weekly strategy had a great return. The week itself was strong, as the market continues to surge ahead.  It’s interesting that the top 5 stocks outperformed the top 10, which outperformed the top 25, which outperformed the top 50.  In a market that is going up everyday, I would expect growth stocks to outperform the SP500 (SPY).

The portfolio is sold at the closing price Friday night, and rebalanced into the make-up of the IBD top 50.



image For the month, the IBD monthly strategy had the same return! That’s because it all started on the same day (2/8) as the weekly strategy. 

This should now change as we head into week 2.

The make-up of the monthly strategy will remain the same until the last trading day of the month, February 28th.

You can view the Top 25 holdings at Motif Investing, but interesting to note the UA was the weak performer in 3 of the 4 IBD strategies.  Perhaps it was the drag of the olympic uniforms!

This is the IBD portfolio performance for the week and since 2/8/2014.  Each portfolio begins with $10,000 and then invests an equal amount in the top 5, 10, 25 and 50 IBD stocks at the closing prices on Friday for the weekly model, and at the closing prices on the last trading day of the month for the monthly model.  Since IBD changes the make up of their top stocks daily, this will only rebalance on Fridays or end of month.  Daily changes in the IBD 50 or stock rankings are not considered.  Changes in IBD’s overall market views are not considered.  Stop loss orders are not considered. 

Based on a blog entry from Paladin Money.  See Investors Business Daily for more information on the IBD 50.  See Motif Investing for their IBD Top 25 portfolio, and the ability to construct your own portfolio of stocks. 

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