Month Six Performance - 10.2%

So, here we are at the half year mark of tracking the performance of the test portfolio.  This month is very eye opening. Recall last month, the test portfolio suffered a steep loss, giving back exactly all of it's gains it had made in the previous five months.  However, it wasn't due to poor selection of stocks, the portfolio was simply mirroring the downturns also experienced by the Canadian and US markets at the time.

I'm pleased to report that the model portfolio has not only recouped it's losses but has actually increased in value during this past month.  Check out the YTD return of 10.23%.  Remember, that in month four (Sept 2014), I indicated the projected portfolio increase of 1.6% per month.  If we multiply 1.6% times 6 months, we get 9.6%.  So we are actually ahead of that projection this month.

Here's the YTD performance chart. 

So let's break it down.  This month we have the most number of stocks showing double digit returns since we started monitoring.  EQB 10.11%, GC 42.48%, GIB.A 11.07%, GIL 14.65% and WFT 11.37%.   Only two laggards LNR which is now at least breaking even around 1.6% and STN with a respectable 5.89% return.

STN and WFT produced dividends most recently, with total dividends now at $116.78.  Portfolio gain (including dividends) is $3607.

Thought I would display the portfolio fundamentals to see if any changes.  Here's the way the stocks looked back in May.

I can see that the P/E ratios are getting to be a bit more expensive now.

Two months ago I also compared our model portfolio to the XIU ETF which tracks the top 60 stocks in the Toronto Stock exchange.  Here's the YTD graph of the returns from May 15 through to today.

The Toronto stock exchange did not quite rebound back the same way our portfolio did.  It's now showing a meagre 2.65% return.   I guess this is proof that if you pick stocks with good fundamentals, they will survive the huge drops and rebound nicely.

Well, that's it for this month's review.  See you in December.