The market and the year to come
A real-money account that followed the Mama Bear Portfolio was tracked during calendar year 2016 by the brokerage firm FolioInvesting.com. The Mama Bear outperformed the S&P 500 (including dividends) for 10 out of 12 months of the year.
Significantly, when the S&P 500 fell a gut-wrenching 11% in January–February 2016, the Mama Bear Portfolio lost only a very mild 3% (image, left above). This head start — a smooth ride that’s typical of Muscular Portfolios — helped the Mama Bear perform well, even though diversified portfolios don’t usually win in bull markets.
For more information, see Newsletter #8.