IB Net Payout Yields Model

Net Payout Yield Slightly Outperforms

Its difficult to get too excited by a portfolio down 17.3% last week. On a relative basis, it was over 0.8% better then the S&P500s 18.1% loss. Great, but nothing to write home about. This portfolio is definitely designed to outperform on a relative basis and hence doesn't have any shorts to benefit it on the downside. Considering its goal, it was a successful week since its goal is to just beat the market on a relative basis whether rain or shine. When the market is pouring losses, it'll likely do the same.

The portfolio has outperformed the market MTD and over the brutal last month. Not bad considering the portfolio has some growth stocks which will definitely lead to out performance in a bull market.

This portfolio continues to perform for those willing to accept market risk and not wanting to time the market. The best part is that this is the type of portfolio that should allow you to sleep at night. Net Payout Yield stocks gain market share and buyback large quantities of stock during downturns. This leaves them stronger then the competition when the recession ends and with less shares outstanding to boost earnings per share. Not to mention that dividend yields are higher as well. Holding onto these stocks will ensure you benefit from the coming market rally. Whenever that actually happens could be painful to wait on though.

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