This winning strategy can make you more money in the stock market with less risk

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These top investment newsletters delivered higher returns with less volatility over time

“ You’ll likely do better over the long term by a lower-risk strategy that you can live with through thick and thin. ”

This Honor Roll includes just those monitored investment newsletters whose model portfolios have produced above-average performance in both up and down markets. To identify which those are, I segregated newsletters’ track records over the past 16 years into what was produced in both bull- and bear markets. Only newsletters with above-median performance in each made the Honor Roll.

Nevertheless, this lower-volatile portfolio performed 1.0 annualized percentage points better over the past 17 years. Needless to say, it’s a winning combination to make more money with less risk. To illustrate, consider the U.S. stock market, which has produced a 7.7% annualized return since 1793 according to a database constructed by Edward McQuarrie, an emeritus professor at California’s Santa Clara University. Imagine a hypothetical investment that each year performed exactly half as well or poorly as stocks. That is, if the stock market produced a 10% return in a given year, this hypothetical asset would have gained 5%.

 

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