Author: Mitch Jones
Covestor model: Price Momentum
At the beginning of the 2011 football season, the Dallas Cowboys had good prospects. They were hyped up even more than normal by local media. Their quarterback, Tony Romo, was healthy again; the draft had gone well; and new coach Jason Garrett had proved himself with some good wins after he took over mid-season in 2010.
Likewise, my Price Momentum investment model seemed to have good prospects heading into 2012. It had a 30%+ return for 2011 and I felt good about making just a few tweaks and continuing with another good year. However, year to date my model has been a disappointment — just like The Boys’ disappointing start (3-4) in 2011. As of April 12, the fund was down 15.2%.
The Cowboys went on to have a winning season and barely missed the playoffs. I hope to salvage a positive return for my model as well.
I have learned some things from my trades so far this year. I am avoiding the types of stocks that have been losers. But more importantly I have learned to not mess with what works. I plan to do less tweaking and stick with what worked in 2011. And I will always maintain hope that the Dallas Cowboys will do better next year.