The 3 Beacon Blog

How to Profit from the Coming Demographic Storm and Stay Ahead of the Crowd

Model Beacon Master Portfolio Performance Update

January 18, 2010

The model Beacon Master Portfolio is showing a return of 79.0 percent, and represents a 49.8 percent outperformance over the S&P Global Index ETF (IOO) since our "Generational Opportunity" buy signal of December 5, 2008.

The model's trend of outperformance is continuing into its second year from December 5, 2009 to January 15, 2010. The model is up 6.4 percent versus a small negative return of 0.4 percent for the S&P Global Index ETF (IOO).

Our relative outperformance in 2009 is due to carful generational stock analysis, backing a traditional market recovery, and most importantly, putting the horse (stock market) before the cart (economy).

Due to our caution, or concerns on sentiment and valuation, we have placed a stop-loss at 1080 on the S&P 500. At this point, we would look to shift to a more defensive portfolio stance to protect the model's capital. More details on this can be found in  the 2010 outlook for markets in our recently released Age Curve Report "Outlook" issue.

Performance  from 5th Dec. 2008 to 15th Jan. 2010

Model Portfolio/Index               
Return%   
Var.% 
     
Model Beacon Master Port. 79.0  
S&P Global 29.2 49.8
S&P 500 28.9 50.1
Canada MSCI Index 73.1 5.9
UK MSCI Index 42.8 36.2
Commodity Index 23.7 55.3
US Bond Index 4.7 74.3

Performance  from 5th Dec. 2009 to 15th Jan. 2010

 

Model Portfolio/Index               
Return%   
Var.% 
     
Model Beacon Master Port. 6.4  
S&P Global -0.4 6.8
S&P 500 2.4 4.0
Canada MSCI Index 3.1 3.3
UK MSCI Index 1.6 4.8
Commodity Index -0.3 6.7
US Bond Index -0.1 6.5