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Fundranker Blog—Fundranker Snaps Back

Fundranker Snaps Back

During May and June, 2010, for the first time in the current, 22-month bull market, Fundranker added another multiple-month downturn, and it was pretty severe. In the six months since then, Fundranker snapped back, reaching new bull market highs in both December and January.

Through June, 2008, the Fundranker system bucked the bear market that started in November, 2007, but in the frantic market downturn that occurred during the last half of 2008 and January and February of 2009, it gave back those gains and then some. Fundranker has had multiple-month downturns only 16 times since 1997, when historical tracking of the Top Eight Model Portfolio began, and it has had only one multiple-month downturn during the current bull market. Here are Fundranker’s losses during those downturns along with its returns during the next three months, six months, and 12 months:

       Next 3  Next 6 Next 12
     Period Months    Loss Months Months Months
Feb/Mar 1997     2 (10.478) 17.993  37.309  49.620 
Jul/Aug 1998     2 (18.332) 24.203  46.650  83.587 
Mar/May 2000     3 (14.633) 20.863  7.140  9.806 
Sep/Nov 2000     3 (11.354) 0.224  2.488  (5.267)
Jan/Mar 2001     3 (9.739) 3.670  (7.140) 12.227 
Aug/Oct 2001     3 (12.200) 13.141  23.520  (1.727)
Jun/Jul 2002     2 (15.637) (6.615) (4.395) 7.475 
Sep/Oct 2002     2 (8.563) 2.377  (4.461) 33.218 
Dec/Mar 2003     4 (7.317) 15.114  23.719  45.021 
Mar/Apr 2004     2 (10.145) 1.538  8.246  16.784 
Jul/Aug 2004     2 (3.678) 14.696  24.092  40.048 
Mar/Apr 2005     2 (6.949) 17.081  20.887  50.482 
Jul/Aug 2006     2 (3.256) 4.659  5.865  16.990 
Jul/Nov 2008     5 (46.834) (9.347) 7.189  28.094 
Jan/Feb 2009     2 (16.832) 18.245  34.694  44.814 
May/Jun 2010     2 (16.526) 10.152  24.044 

The five-month downturn that began in July, 2008, was the first multiple-month downturn Fundranker had had for two years, and it is by far the worst and longest that Fundranker has suffered. As the Great Recession, the worst recession since the Great Depression, continued, Fundranker added another two-month downturn in January and February, 2009. As it did after many past multiple-month downturns, however, Fundranker was able to garner impressive returns over the following periods.

Although past results are never an assurance of future performance, you still can benefit from knowing that Fundranker almost always has gone on to better performance in the months that follow a multiple-month downturn. Let this knowledge boost your confidence in Fundranker. Stay disciplined, and stick with the Fundranker system.

Posted 1/6/11 4:51pm ET in Fundranker

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