Rebound: Model Shadow Stock Portfolio Strongly Up, But Still Playing Catch-Up

Well, the Model Shadow Stock Portfolio is up 30.1% year-to-date and that is good.

The portfolio is also way ahead of the S&P 500 (as measured by the Vanguard 500 Index fund), which is up 3.0%—and that is also good.

But we also have to face the brutality of bear market mathematics: When you are down 50%, you have to go back up 100% just to get to where you were before the bear market hit. And for that, we still have quite a ways to go.

You can view the overall historical record in Figure 1, which shows the cumulative return and compound annual returns for various periods for the portfolio, and Table 1, which provides the entire history of the Model Shadow Stock Portfolio.

Figure 1. Model Shadow Stock Portfolio vs. Benchmarks (Through 5/31/2009)

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