Never Lose Money Investment Strategy

[cjam]

I've just spent the last couple of days working out the performance of the No Lose alone and No Lose combined with High Yield holdings with the 10% stop approach (No Lose borrows from the 5% high yields income, repaying back at convienient times).

Compared to the SPX which has effectively moved sideways over the 7 year period, producing a dividend income only benefit of some 1.5% to 2% p.a. average, the No Lose alone approach generated 11% p.a. whilst the blend produced 13% p.a.

Personally my alpha's (stock selectivity) has been rather productive, having added a further 3% p.a. average benefit - a combined 14% p.a. total based on No Lose alone.

Had I used the blend then that figure would have been around 16%.

Put into context, an SPX investment would have gained around 10% in total across the 7 years, whilst we're up around 150%.

The SPX has a considerable amount of catching up to do, but the nature of the strategy makes it extremely difficult to do so ;>)