1st Quarter Results In. Where would you rather be?

The 2 for 1 Index® had a great quarter, finishing up 5.05% vs. the S&P500 Index, up 0.77%. We are 1/4 through 2016. Where would your rather be to start the next three quarters?SPLITS VS SPX

Why would you give any money to these guys?

Losing Money…more hedge funds closed their doors in 2015 than at any time since the financial crisis, as turbulent markets dragged down the industry’s performance. According to data from Hedge Fund Research, last year was the worst period for liquidations since 2009, with 979 funds closing, up from 864 in 2014. The fourth quarter of 2015 also saw the fewest new hedge funds starting up since 2009, with just 183 openings compared to 269 in the third quarter.

Text copied from SeekingAlpha.com’s “Wall Street Breakfast” 3/18/16

Who’s better positioned for the rest of the year?

YTD

The 2 for 1 Index® has only dipped slightly (-1.0%) so far in 2016. The S&P 500 has lost over 5%. When the pendulum swings back to the positive, where would you rather be starting from?

 

Nike (NKE) the latest add to the 2 for 1 Index

SwooshNike, Inc. (NKE) is the company most recently added to the 2 for 1 Index®. NKE replaced American States Water (AWR) on February 12, 2016. Nike announced its split back in November but was not added to the Index at that time because of its relatively pricey PE and other valuation metrics. As a result of the market pullback, Nike came to an acceptable price point and became February’s selection for the 2 for 1 Index.

Aside

No one likes to see their portfolio go down but, because it went down less than the broad indexes, there is some consolation in the fact that we have still beaten the market. The 2 for 1 Index dropped about 3% vs. the broad market’s decline of over 5% over the 1st month of 2016. The hope is that this higher launching pad will allow 2 for 1 to take off and keep well ahead of the market for the rest of the year and beyond.Jan 2016

 

Three Promising Splits

zipperThere have been three 2 for 1 split announcements so far in November, Nike (NKE), Edwards Lifesicences (EW), and Hormel Foods (HRL), offering up a good selection for the monthly update of the 2 for 1 Index® on December 18th. The 2 for 1 Index, the basis for the Stock Split Index Fund (TOFR), is up 4.9% so far, YTD.