A Russian Rally? Fun Stocks Index Hits All-Time High (Up to 524.62%)
Let’s thank the Russians for this one-week “bounce rally.” If our President is secretly thanking the Russians for helping him get a temporary reprieve from the potentially devastating Syrian quagmire, then we should thank them too for this short-term “relief rally” in the global stock markets. The questions are, “How long will it last?” and “Are the Russians really out to solve the Syrian conflict, or are they just ‘playing’ us to get some advantages?” Stay tuned as the geopolitics unfold over the next weeks or months and see how they will impact stock markets worldwide.
Meanwhile encouraging export data from China is helping to maintain positive investor sentiment, but is it enough to push the indexes to new highs? In our view, it will take stronger economic results and expectations to push the markets much higher. Investors should accumulate positions slowly.
In looking at various major indexes, it is most interesting to discover that our Fun Stocks Index (FSI) continues to hit new highs (up to 524.62% since January 1, 2009) and when compared to the Dow, S&P 500, and NASDAQ 100 indexes, it has performed remarkably well. In fact, in this time frame our Fun Stocks Index has outperformed these indexes by:
- 7.04 to 1 (Dow Jones Industrial Index)
- 5.98 to 1 (Standard & Poor’s Index)
- 3.23 to 1 (NASDAQ 100 Index) .
If an investor had put 25% of his or her portfolio into each index (including FSI) for diversification and risk management, the average total return would be 212.33% from January 1, 2009 to now. This is an excellent result for very little effort since index investing is a very easy way to invest. Click here to learn how to create your own Fun Stocks Index.