EOM Q&A: Garden Growing and 2017 Q3 DIV. Report Q&A IX 10.18.17
Last week I stated, “If looking to enter at these levels, one needs at least a 5%+ run to break-even before a 5% pullback.
On Monday, we studied the last 5% pullback (Nov. 2016) and what happened afterward.
Today we study the first five candidates in the All-Star group to answer…
1. Did these funds sell with the market?
2. When the SPX recovered and ran, did these candidates run?
1. Yes, all five funds were hit with profit taking with the SPX-red box
2. When the SPX ran, all five funds had a positive return and four outperformed the SPX
Something to consider…
If playing the short game (trading) these funds were excellent candidates
If playing the long game (Garden Growing) even though one fund underperformed the SPX, all five continued to pay dividends-building additional shares.
What am I looking for?
If these funds had negative returns while the SPX rallied, then I would be cautious with these funds. As you can see-this was not the case.
The rest of this series, we see if our All-Star and CEF VIP Fund candidates under or outperformed the SPX….from 5% ago.
This will give valuable insight for those planning to buy at these levels.
Questions-send them to me at Eyeonthemarket@outlook.com
Enjoy your week!
David O. England