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April Changes to SSR Portfolio

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We have posted our monthly changes to the SSR tracking portfolio. For more information on this month’s deletion and addition, read the April SSR Monthly Report.

March Market Recap

With the fourth-quarter earnings season all but finished, and with the consensus that the Fed won’t be raising interest rates again until at least June, investors and traders have been looking for another driver of stock prices. They found it in Washington, D.C.: Optimism regarding Donald Trump’s legislative agenda—and the potentially positive impact it would have on various sectors and, ultimately, stock prices—turned to skepticism as House Republicans failed to vote on a replacement for the Affordable Care Act (aka Obamacare). As a result, U.S. stocks took a bit of a breather this month. Through Friday’s close, the iShares DJ U.S. ETF fund (IYY) is down 0.3% and is on pace for its first monthly loss since October. Prior to posting a daily gain on Tuesday, March 28, the Dow Jones industrial average saw eight consecutive losing days, its longest such streak since 2011. On the bright side, however, the cumulative loss of 1.9% over that stretch is not as bad as the 6.7% decline the Dow saw back in 2011, according to The Wall Street Journal.

Through the close on March 31, the SSR tracking portfolio is outpacing its IYY benchmark, gaining 0.4% for the month. As of the close on March 31, 20 of the 36 SSR stocks posted a monthly gain while 15 are down for the month and one is unchanged. On average, the stocks in Group 3 were the strongest performers in the SSR tracking portfolio in March. The group had two of the top five stocks in terms of monthly percentage price change and three of the top nine. After two months of general outperformance relative to the other groups, Group 2 stocks, on average, were the laggards of the portfolio. Eight of the group’s 12 holdings ranked in the bottom half of the SSR portfolio for monthly price change.

SSR Portfolio

Year-to-date through the close on March 31, the SSR tracking portfolio has gained 6.3%, while the iShares DJ U.S. ETF (IYY) has risen 5.5% on a total return basis. Since inception, the iShares DJ U.S. fund is up 188.1%, while the SSR portfolio has gained 238.1%.

Wayne A. Thorp, CFA
Senior Financial Analyst, AAII
SSR Investment Committee
wayne@aaii.com
@WayneTaaii

Click here for news on the current SSR holdings and weekly performance data.

The Stock Superstars Report (SSR) publication was developed to educate individual investors on how to build a stock portfolio using a mix of strategies. The SSR is designed to provide all the information you need to manage a stock portfolio as well as to teach you about timely investment principles relating to the SSR portfolio and stock investing in general.

 

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