What a difference a year makes. After trailing the major indices in 2013, our lower risk PEG-based model portfolio is off to a great start this year. The Rayno Report portfolio of stocks is up 9.1%, or 4.5% if you kept 50% of your portfolio in cash as we modeled at the beginning of the year.
In contrast, the S&P 500 Index is up 1.87% year-to-date (YTD) and the Dow Jones Industrial Average is about flat.
As a reminder, our portflio is based on the premise of finding value, mostly in the form of Growth at a Reasonable Price (GARP), or in valuation terms, a low PEG valuation (price/earnings/growth). Studies show that low-PEG stocks have higher than average returns with lower than average risk.