Our $1,000,000 Dollar Initiative
When John Shubert first came into our office and began to explain the permanent flaw in the financial system and how his rules-based investment system could help anyone sidestep this profit killer, I was all ears.
But there was just one problem.
Our minds have a habit of wanting to make simple concepts into complex ones. So it took some time for me to “get” why John’s Alpha 15 Portfolio investment system is so exciting.
So to keep the facts straight, I made a simple checklist:
The permanent flaw:
- Some mutual fund managers are actually good stock pickers. Check — got it.
- But you’d never know that from the underperformance of their funds’ portfolios — because most mutual funds own way too many stocks (100, 200, and often more). Check — got it.
- And why do most funds own too many stocks? Because the industry relies on an outdated statistical measure of risk called Modern Portfolio Theory (MPT). MPT rewards herd-like behavior that never beats a benchmark like the S&P 500. Check — got it.
- Massive over-diversification and oppressive industry fees continue to crush investor profits. Check – got it.
- Identify the best stock-picking fund managers out there, and then identify the handful of stocks in their portfolios that have the highest fund manager conviction, then . . . buy those stocks yourself. Check — got it!
It’s that simple.
John’s system picks the three highest conviction stocks of the five best performing fund managers for a 15-stock portfolio that crushes the market.
Of course, in the investment newsletter business everyone has a pitch for why their investment program should outperform the stock market.
But most fail to pass the test when their investment system is loaded up onto a third-party computer and back-tested using actual stock market data — this the equivalent of verifying a scientific experiment by having another scientist run the same test.
If they don’t get the same results — your theory is nothing but junk science.
This is precisely why Newsmax contracted a Duke University professor of accounting to meticulously back-test John’s system using the previous 12 years of the stock market’s wild swings— 12 of the worst years since the Great Depression.
We wanted to make sure John’s system could make money no matter how bad things got. And when we finally got the results back, we were shocked.
Right there in black and white, the password-protected spreadsheet going back to 2002 showed John’s Alpha 15 Portfolio
beating the market by a 7-to-1 margin!
And the detailed data was fascinating.
My team and I found that the Alpha 15 stocks — bolstered by the massive purchasing power of those FIVE top-performing fund managers — tended to lose less when the broader market declined, and gain more when the broader market rose.
Charting all this data showed visually just how compelling Alpha 15 could be.
In fact, you could have recorded cumulative gains of 424% through a period that included some of the worst economic times in recent history, compared to a paltry 63% from the stock market as a whole. Plus, as you will learn tomorrow, you could have done all of this with less risk (below is a screenshot of the chart we will be showing in our live webinar tomorrow).
You see the back-testing conducted by the professor at Duke University clearly demonstrated that by patiently following a systematic program an investor would significantly outperform the market over time.
Even when you break down the portfolio stock by stock, you can see how it continues to outperform the market . . . even when the market rises.
In the table below you can see the exact holdings from the last quarter of the Duke professor’s back testing — Q4 of 2013.
During that time, the stock market only went up 4.4% while the Alpha 15 Portfolio hit 13.09% — that’s THREE times the return of the overall market!
Here is a snapshot from the back-tested results.
On the left are the positions, then the company name, the stock symbol, the price we entered the position at, what we sold it at, as well as the ROI we would have received.
As you can see, not all positions are winners, but overall, the returns are great.
The bottom line is that the results from the last 12 years were so impressive, we here at Newsmax have decided to do something we’ve never done before . . .
Solely based on the stellar results of John’s rules-based system, we are putting $1 million of the company’s money into a brokerage account that will exclusively trade on the signals generated by John’s Alpha 15 Portfolio program.
Rest assured that this is not an action I take lightly.
But when you see all the details tomorrow at The Newsmax Investment Crisis Summit . . . you will understand why we’ve gone from 100% confidence in John’s system, to 100% commitment . . .
- $1,000,000 . . . Check — got it!
And tomorrow, at the end of The Newsmax Investment Summit
we will show you how you can follow every trade in the Newsmax’s Alpha 15 Portfolio
account — fact is, we are going to do one better than that, but you will have to wait until tomorrow to see.
So make sure you block out a full hour on your calendar for tomorrow at 1 p.m. Eastern time. You will not want to miss one minute of what my team and I have in store for you at The Newsmax Investment Crisis Summit.