One of the biggest benefits of this is whenever a stock gets "on a roll,” we will continue to hold that stock for bigger gains. And make no mistake about it; this is still a TopStock portfolio. We adhere strictly to our strategy of owning only the top rated stocks in terms of earning strength and company performance.
Managing Risk: It is also important for new members to understand that we have a defensive strategy in place in the TSP Top 5 Portfolio. Although the portfolio has displayed the ability to outperform the market by a large margin during positive market environments (the Top 5 system was up +108.6% in 2006-07 vs. +17.6% for the S&P 500), there are times where it is important to play defense. In short, we don’t make “market calls.” Instead, we use a bottom-up, stock specific method. Whenever one of our holdings breaks down into a downtrend on a chart basis, we sell the stock. This approach WILL create whipsaws on occasion, but it will also keep us out of big trouble if things become grizzlier in nature.
Do TopStock Ratings Really Matter?
We certainly think so, but sometimes it is best to let the numbers do the talking. Below is a table showing the average annualized returns for each rating category, as determined by historical testing done by one of the country's largest independent institutional research firms.
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The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of TopStocks Trading and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.
Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.
The analysis provided is based on both technical and fundamental research and is provided “as is” without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.
The information contained in our websites and TopStockPortfolios publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered with the U.S. Securities and Exchange Commission as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.
Employees and affiliates of HCM and Ridge may at times have positions in the securities referred to and may make purchases or sales of these securities while publications are in circulation. Editors will indicate whether they or HCM has a position in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and may change thereafter without notice.
The performance of the TopStock Ratings are linked monthly price changes of equal weighted hypothetical portfolios consisting of those stocks with the indicated TopStock Rating assuming monthly rebalancing zero transaction costs. Results do not include dividends and are from the time period 12/31/95 through 6/30/02.
The returns shown for the Top 5 in 2006 and 2007 are a hypothetical implementation of the portfolio strategy
