The SP500 was relatively flat the second week of 2017, and the IBD leaders played catch-up.
With the weekly changes and rebalancing of the weekly portfolios, it seems that the strategies are chasing performance.
$HQY was the top ranked stock in the IBD50 for the week in the top 25 and top 50 portfolios. $UBNT had a nice gain for the top 5 and top 10 portfolios.
How is the monthly investing strategy for the top 50 IBD leaders do?
It’s always interesting to compare how the changes in the monthly vs weekly IBD 50 strategies diverge as the month goes on.
$HQY was the top ranked stock in the IBD50 for the week in the top 25 and top 50 portfolios. $UBNT is at the top for the top 5 and $EVR for the top 10 portfolios.
Top 5 stock $NVDA leading to the downside to start 2017. $GATX struggling in top 10, top 25, and top 50 portfolios.
All strategies exclude dividends in the calculations.
I will assume a $9.95 trading cost to sell last week’s or last month’s portfolio, and $9.95 to buy the new weekly or monthly portfolio. (Imagine the costs of doing this with individual stocks, compared to using Motif. Note that Motif limits the size of portfolios to 30 stocks).
None of the above strategies are a recommendation to buy or sell stocks. These are model portfolios constructed for entertainment only.
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. It is assumed that trading costs are $9.95 to “buy” a model portfolio, and $9.95 to “sell” a model portfolio. Thus, each weekly or monthly rebalance out of the previous portfolio and into the new portfolio costs $19.90. 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 or other market timing strategies are not considered. The value for SPY is based on buying at the closing price the last trading day of the preceding year.
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.
I apologize for any spreadsheet errors!