Creepin’ Up by Keeping On – Market Shadows’ Value Portfolio made a new high this week
By Paul Price of Market Shadows
You Can’t Beat the Indices if You’re Not Invested
2013 has been a great year for the broad market. As of Dec. 20th the Dow Jones  Industrials were up 23.8% and the S&P 500 was ahead by 26.9%. That was a great tailwind for investors willing to go ‘all in’ with a 100% equity allocation.
If you held back part of your money in cash you earned almost nothing on that segment. If you opted for physical gold, precious metals ETFs or mining stocks you suffered big losses. Gold hit a three-year low this week.
Ultra-conservative intermediate and long-term government bonds lost money in 2013 on a total return basis. Those who followed standard ‘stocks-bonds-cash-gold’ asset mix advice have done much, much worse than the equity market.
At year end you need to measure the change in your overall net worth against the indices, not just the part that was actually invested in stocks. Market Shadows is proud to say we’ve done better than our benchmark, the S&P 500 ETF (SPY) since inception on 100% of our original stake since our inception date (Oct. 26, 2012).
As of Dec. 20, 2013 our $100,000 investment has grown cumulatively by 36.63%.
We sold some winners and bought some new shares for the portfolio this week. See the details of all our closed-out and current positions by clicking here .
Our sale of Korn Ferry  was seconded by the company’s CEO as reported by Barrons.com today. A KFY Director also was a substantial seller this week.
Even CEOs can’t call exact tops. By Friday the stock went even higher, closing out at $25.95.
Think like an insider. Sell any shares you think are fully valued. Be satisfied and refuse to beat yourself up if a stock goes higher afterwards.
Market Shadows would be more than happy if we can negotiate a repeat performance in 2014.
