Bill Rempel, a.k.a. NO DooDahs!

The Fundamental portfolio screens for stocks that meet basic criteria, such as earnings and revenue growth, earnings quality, and debt-to-capital rations, then ranks them by ROE to hold the top 20. The portfolio is currently experiencing a drawdown as severe as any it saw in backtest during the bear market bottom of 2003. Given the recent and extreme negative price action in the overall stock market, I still believe it is too early to conclude that the system action is a significant deviation from expected, based on backtesting. As a result of its regularly-scheduled four-week evaluation, the portfolio is making changes, swapping out 6 of the 20 positions. [Read more …]