Top Names, 8/8/2024

A brief market comment, then on to our performance update and core strategy.

Another Exciting Week

It’s been another exciting week, with the chaos in Japan, U.S. growth concerns, etc. Remember our game plan for dealing with the uncertainty:

• If you’re concerned about downside risk for positions you already own, consider hedging on the next day the market is up. As a reminder, you can download our iPhone hedging app here, or by aiming your iPhone camera at the QR code below.

• We’ll use up days to add short positions, and down days to add long positions, as we surface compelling ideas.

Today, we took advantage of the rally to add a couple of short positions.

And we also exited a bullish trade today for a 236% gain.

@dpinsen @dpinsen ♬ Steal My Sunshine (Single Version) - Len

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Now onto a recap of our core strategy and a performance update on our top names.

Our Core Strategy

Our core strategy is to buy equal dollar amounts of the Portfolio Armor web app’s top ten names, put trailing stops of 15%-20% on them, and replace them with names from the current week’s top ten when we get stopped out of a position.

A Top Names Performance Update

Before we get to this week’s top ten names, let’s look at the final, 6-month performance of our top ten names from February 8th.

Over the next six months, our top ten names from February 8th were up 2.7%, on average, versus up 6.83% for the SPDR S&P 500 Trust (SPY 0.00%↑).

So far, we have 6-month returns for 59 weekly top names cohorts since we started this Substack at the end of December, 2022.

And as you can see above, our top names have averaged returns of 22.08% over the next six months, versus SPY’s average of 12.92%. You can see an interactive version of the table above here, where you can click on each date and see a chart showing each of the holdings that week.

This Week’s Top Names

Below are Portfolio Armor’s current top ten names as of Thursday’s close.