Weakness across the balance of the portfolio – with the notable exception of Terex (TEX) – has resulted in the portfolio underperforming the S&P 500 benchmark over the course of the past two months. For the full life of the portfolio, the gains of 4.8% continue to better the S&P 500, but by a margin that has slipped to 1.5%.
I should note that with the fractional losses of the two holdings added last week, Portfolio A1 now has had a total of four winning trades and eight losing trades to date. This is important because the intent of this portfolio is not to aim for a high percentage of winners by hitting a lot of singles, but to seek out doubles, triples and home runs, with the expectation that there will be many instances in which the portfolio is stopped out of losing trades. Based on past performance of similar portfolios, my guess is that it will probably take a year or two before this approach is evident from the portfolio statistics.
There are no changes to the portfolio for the coming week.
A snapshot of the portfolio is as follows: