Author: Darren Taylor
Covestor model: Top 5 Screener
The Top 5 Screener strategy is best suited to directional markets that allow it to take advantage of inexpensive trending stocks. For this reason, unfortunately in 2011 the portfolio underperformed the S&P500 by about 3%.
With the markets’ wild volatility, we kept getting whip sawed in and out of our picks, which severely limited performance.
While I expect some volatility to continue in early 2012, once some of Europe’s problems are settled I believe markets will smooth out later in the year. Using this as my backdrop, I see no reason to alter the strategy.
With that in mind, I do plan on carrying less cash than the model has averaged over the last year.
Happy investing,
Darren
