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When push comes to shove, it is all about performance. You have seen the ads, the hype, the promises, but what happens when the rubber hits the road. Does the system really work? How does it behave over time and in different markets? When it comes to anything related to people, and the market is ultimately driven by human nature, no approach is going to work every day because people are people. As investors and traders we want a system that consistently puts us in a position to succeed and the PRS methodology continues to prove its effectiveness and value.
The PRS Report was launched on November 1, 2006. As of October 3,
the PRS report has been "live" and making recommendations for over eleven months. The chart below shows the performance of all stocks having
reached our entry criteria from November 1 through October 3 vs. the
S&P 500.
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As of October 3, 2007
- the S&P 500 has advanced a scant 11.5%
- The composite average for PRS stock selections is up 16.5%, 5% better than the S&P
Our open Active Recommended list continues to beat the S&P 500 by a significant margin.
After the market peaked in July 2007 the very strong stocks we are always focused on were hit with heavy selling and panicked investors booked profits. However, many stocks did not reach their exit criteria and once the recovery began the strong stocks resumed their roll as out performers. As a result we have seen a performance rapidly return.
In late February the stocks we focus on were powering higher reaching an extreme peak. When the late February correction set in the extended stocks pulled back more relative to the S&P 500. However, as is most often the case, the strongest stocks rebounded quickly with many pushing on to new highs. The PRS Performance line quickly rebounded performing much better than the S&P 500.
At the February high our exclusive PRS Time Plane indicated a high risk condition. As a result we were telling folks to maintain a conservative position (read: hold a lot of cash) during February. As a result, our model portfolio was carrying a healthy cash position, which insulated us from the sharp pullback. With strong stocks and a conservative position we continue to out perform the S&P 500.
The composite Performance lines are based on the average daily percentage change for all Open Active Recommendations after 11/1/06.
Summary Table of Recomendations:
Overall Results 11/1/06 to 10/3/07
|
| 100 |
Stocks UP |
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| 105 |
Stocks Down |
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| 205 |
Total Trade Count |
| 23.55% |
Average Gain |
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| (14.22%) |
Average Loss |
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| 4.20% |
Average per Stock |
| 862.01% |
Total % Gains |
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Learn More About the PRS methodology
The chart below shows the PRS Composite return for all stocks reaching our entry criteria vs the S&P 500 since June 1, 2004. The data before 11/1/06 is "back tested" data using the same entry and exit criteria. Viewing over three years of data the out performance of our methodology is clearly visible. Our Strategy produced a return of 145%, almost four times the price performance of the S&P 500's return of 36.9%.
Key BLUE Line = PRS Composite Return
Black Line = S&P 500 Return
Strong stocks tend to remain strong and continue moving higher at a faster
rate than the overall market. In fact, that is why we call them strong
stocks. Stocks that don't perform as well as the rest are weak and we avoid those issues. Over the course of time, Money chases performance. Because of this human constant, stocks that are leading the market higher tend to continue leading the market higher and that is how one racks up consistently large returns. Corrections come and corrections go, but traders and investors
alike always want to own the strongest stocks, the ones going up the
faster than the rest and that is why the PRS methodology works.
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The long-term chart validates the earning potential of our process.
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