Effectiveness of NSP Longer Holding Periods
With the origination of the NSP of course the objective was to identify some of the absolute best stocks ready to
move higher NOW. Stocks that are ideal for swing trading tactics. We are confident that the superb track record
generated in accomplishing that goal speaks for itself and it has continued into 2009 and 2010 real-time.
What is really exciting however is that these very same stocks (designed for swing trading) have historically
done rather outstanding when being held for longer periods also. Two weeks, four weeks, and even much longer
time-frames as well.
So let's dig into some details of what we're talking about. Below is a study of two and four week holding
periods for the various performance measures we utilize. Just as in earlier studies the first date of purchase was
considered to be on 4/02/01.
As can be seen in the accompanying tables the NSP Value Plus, NSP Top 10 and NSP Top 20 once again essentially
clobber the S&P 500 when the chosen stocks are held for two weeks before being re-balanced.
Remarkably, it is pretty much the same story when these stocks are instead held for a full four weeks. In fact,
the ONLY time the S&P 500 managed to squeak by was when it marginally outperformed the NSP Top 10 and NSP Top
20 in 2009. Not too shabby considering these stocks are really selected because of their powerful potential in
swing trading.
Two Week Holding Periods
|
Year
|
NSP Value Plus
|
NSP Top 10
|
NSP Top 20
|
S&P 500
|
|
2001
|
82.1% * |
102.7% *
|
98.0% *
|
(- 1.4%) *
|
|
2002
|
45.5%
|
2.6%
|
(-9.6%)
|
(-23.4%)
|
|
2003
|
213.2%
|
286.4%
|
235.8%
|
26.4%
|
|
2004
|
82.5%
|
52.1%
|
46.5%
|
9.0%
|
|
2005
|
49.0%
|
24.5%
|
37.1%
|
3.0%
|
|
2006
|
58.4%
|
50.0%
|
35.4%
|
13.6%
|
|
2007
|
97.8%
|
97.5%
|
60.0%
|
3.5%
|
|
2008
|
(-14.3%)
|
(-15.0%)
|
(-22.7%)
|
(-38.5%)
|
|
2009
|
101.8%
|
31.8%
|
29.1%
|
23.5%
|
* (Results achieved from 3/31/01-12/31/01 are annualized across
the full year)
Four Week Holding Periods
|
Year
|
NSP Value Plus
|
NSP Top 10
|
NSP Top 20
|
S&P 500
|
|
2001
|
137.0% * |
55.1% *
|
79.7% *
|
(- 1.4%) *
|
|
2002
|
22.2%
|
9.3%
|
(-0.9%)
|
(-23.4%)
|
|
2003
|
261.7%
|
154.5%
|
194.3%
|
26.4%
|
|
2004
|
43.4%
|
47.7%
|
35.8%
|
9.0%
|
|
2005
|
45.1%
|
29.4%
|
29.2%
|
3.0%
|
|
2006
|
31.1%
|
18.7%
|
24.4%
|
13.6%
|
|
2007
|
52.4%
|
82.0%
|
42.8%
|
3.5%
|
|
2008
|
(- 0.5%)
|
(-14.4%)
|
(-11.2%)
|
(-38.5%)
|
|
2009
|
50.2%
|
18.6%
|
20.4%
|
23.5%
|
* (Results achieved from 3/31/01-12/31/01 are annualized across the full
year)
Advantages of Longer Holding
Periods
Now some might be apt to emphasize just how impressive the above results are considering the institution of longer
holding periods before the re-balancing process takes place. Part of what it shows is that many of the NSP stocks
have historically proven to not just be rapid-rising quick-hitting wonders but also to have staying power as well.
Of course utilizing longer holding periods may require greater patience, and larger losses may be incurred at
times as part of that process as well. That next NSP "hot stock" may be passed over. That being said though, there
can be some real advantages to partaking in longer holding periods also.
For instance, money may be saved on operating costs such as commissions and other trading fees etc. and the
effects of any possible slippage and/or bid/ask spreads may be reduced. In addition to potential cost savings,
giving a rising stock more time to peak can turn into a real positive at times. Then there may also be
psychological benefits for many (less stress and/or time involved etc.).
Of course every unique investment method can have its advantages and disadvantages. The determining
factors as to what method works "best" can certainly vary greatly between individual based on his/her
"situation".
Taking the above into account, we are very pleased to announce some new additions for the year 2011.
Exciting News for 2011
In moving ahead to the year 2011 we are very excited to introduce the addition of some new results tracking
mechanisms. By adding these to our current group, we will now have a whopping 23 different performance
measures (or portfolios) to track in 2011.
Weekly Re-balancing
| 1 |
NSP Value Plus
otherwise simply known as
V alue Plus |
This has been our primary, preferred method and has
historically produced rather outstanding results. It is made up of the top ten NSP ranked stocks
which trade at or below the specifically defined "Value Plus
Entry Price" on the first trading day of the week. |
| 2 |
NSP Value Plus
All otherwise known as Value Plus
All |
NEW in 2011-These stocks are the same as
the NSP Value Plus above but ALL of the NSP Top 200 stocks which meet the specified criteria will
be included--rather than just the top ten as in the NSP Value Plus. |
| 3 |
NSP 100
Index |
Comprised of the top 100 NSP ranked stocks each week.
Stocks are simply bought at the opening price of the week's first trading day and then
re-balanced at the first open of the following week. |
| 4 |
NSP Top 10 |
Comprised of the top 10 NSP ranked stocks each week.
Stocks are simply bought at the opening price of the week's first trading day and then
re-balanced at the first open of the following week. |
| 5 |
NSP Top 20 |
Comprised of the top 20 NSP ranked stocks each week.
Stocks are simply bought at the opening price of the week's first trading day and then
re-balanced at the first open of the following week. |
Two-Week Re-balancing
| 6 |
NSP Value Plus Two-Week Portfolio A |
Buy/Sell Re-balance dates: |
1/03/11, 1/18/11, 1/31/11, 2/14/11 & every two weeks thereafter |
| 7 |
NSP Value Plus Two-Week Portfolio B
|
Buy/Sell Re-balance dates: |
1/03/11, 1/10/11, 1/24/11, 2/07/11 & every two weeks thereafter |
| 8 |
NSP Top 10 Two-Week Portfolio A |
Buy/Sell Re-balance dates: |
1/03/11, 1/18/11, 1/31/11, 2/14/11 & every two weeks thereafter |
| 9 |
NSP Top 10 Two-Week Portfolio B
|
Buy/Sell Re-balance dates: |
1/03/11, 1/10/11, 1/24/11, 2/07/11 & every two weeks thereafter |
| 10 |
NSP Top 20 Two-Week Portfolio A |
Buy/Sell Re-balance dates: |
1/03/11, 1/18/11, 1/31/11, 2/14/11 & every two weeks
thereafter |
| 11 |
NSP Top 20 Two-Week Portfolio B
|
Buy/Sell Re-balance dates: |
1/03/11, 1/10/11, 1/24/11, 2/07/11 & every two weeks thereafter |
Four-Week Re-balancing
| 12 |
NSP Value Plus Four-Week Portfolio A |
Buy/Sell Re-balance dates: |
1/03/11, 1/31/11, 2/28/11, 3/28/11 & every four weeks thereafter |
| 13 |
NSP Value Plus Four-Week Portfolio B
|
Buy/Sell Re-balance dates: |
1/03/11, 1/10/11, 2/07/11, 3/07/11 & every four weeks thereafter |
| 14 |
NSP Value Plus Four-Week Portfolio C |
Buy/Sell Re-balance dates: |
1/03/11, 1/18/11, 2/14/11, 3/14/11 & every four weeks thereafter |
| 15 |
NSP Value Plus Four-Week Portfolio D |
Buy/Sell Re-balance dates: |
1/03/11, 1/24/11, 2/21/11, 3/21/11 & every four weeks thereafter |
| 16 |
NSP Top 10 Four-Week Portfolio A |
Buy/Sell Re-balance dates: |
1/03/11, 1/31/11, 2/28/11, 3/28/11 & every four weeks
thereafter |
| 17 |
NSP Top 10 Four-Week Portfolio B
|
Buy/Sell Re-balance dates: |
1/03/11, 1/10/11, 2/07/11, 3/07/11 & every four weeks thereafter |
| 18 |
NSP Top 10 Four-Week Portfolio C |
Buy/Sell Re-balance dates: |
1/03/11, 1/18/11, 2/14/11, 3/14/11 & every four weeks thereafter |
| 19 |
NSP Top 10 Four-Week Portfolio D |
Buy/Sell Re-balance dates: |
1/03/11, 1/24/11, 2/21/11, 3/21/11 & every four weeks thereafter |
| 20 |
NSP Top 20 Four-Week Portfolio A |
Buy/Sell Re-balance dates: |
1/03/11, 1/31/11, 2/28/11, 3/28/11 & every four weeks thereafter |
| 21 |
NSP Top 20 Four-Week Portfolio B |
Buy/Sell Re-balance dates: |
1/03/11, 1/10/11, 2/07/11, 3/07/11 & every four weeks thereafter |
| 22 |
NSP Top 20 Four-Week Portfolio C |
Buy/Sell Re-balance dates: |
1/03/11, 1/18/11, 2/14/11, 3/14/11 & every four weeks thereafter |
| 23 |
NSP Top 20 Four-Week Portfolio D
|
Buy/Sell Re-balance dates: |
1/03/11, 1/24/11, 2/21/11, 3/21/11 & every four weeks thereafter |
For information regarding a completely FREE two-week trial with the NSP please click
here.
|
