{"id":323160,"date":"2023-05-11T14:14:36","date_gmt":"2023-05-11T18:14:36","guid":{"rendered":"https:\/\/stockchase.com\/discover\/?p=323160"},"modified":"2023-05-30T17:38:03","modified_gmt":"2023-05-30T21:38:03","slug":"stockchase-panic-proof-portfolio-april-2023-update","status":"publish","type":"post","link":"https:\/\/stockchase.com\/discover\/stockchase-panic-proof-portfolio-april-2023-update\/","title":{"rendered":"Stockchase Panic-Proof Portfolio \u2013 May 2023 Update"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Discover What&#039;s Inside<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/stockchase.com\/discover\/stockchase-panic-proof-portfolio-april-2023-update\/#A_year_to_forget\" >A year to forget?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/stockchase.com\/discover\/stockchase-panic-proof-portfolio-april-2023-update\/#Panic-Proof_Portfolio_proves_its_no-panic_grounds\" >Panic-Proof Portfolio proves it&#8217;s no-panic grounds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/stockchase.com\/discover\/stockchase-panic-proof-portfolio-april-2023-update\/#Stop-loss_Strategy\" >Stop-loss Strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/stockchase.com\/discover\/stockchase-panic-proof-portfolio-april-2023-update\/#Capital_Preservation\" >Capital Preservation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/stockchase.com\/discover\/stockchase-panic-proof-portfolio-april-2023-update\/#Where_will_the_market_go_in_2023\" >Where will the market go in 2023?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/stockchase.com\/discover\/stockchase-panic-proof-portfolio-april-2023-update\/#How_to_get_access_to_the_Panic-Proof_Portfolio\" >How to get access to the Panic-Proof Portfolio?<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"A_year_to_forget\"><\/span>A year to forget?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>2022 was a year most equity investors will likely want to forget as markets saw some of the largest bear retracements since the financial crisis of 2008.<\/p>\n<p>The outlook for corporate earnings grew uncertain with ongoing pandemic-related supply chain issues, the Russian invasion of Ukraine, recessionary fears, and many other fundamental factors. These combined to accelerate global inflation rates to multi-decade highs \u2013 historically a harbinger for market declines.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Panic-Proof_Portfolio_proves_its_no-panic_grounds\"><\/span>Panic-Proof Portfolio proves it&#8217;s no-panic grounds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>One of the bright spots, however, was the performance of the Stockchase Panic-Proof Portfolio. Although it did not show a gain in 2022, its decline was less than 1%.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-323162\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2023\/05\/3May2023-1.jpg\" alt=\"\" width=\"860\" \/><\/p>\n<p><strong>In 2022 the Panic-Proof Portfolio saw two months with gains in excess of 7%, two months with losses over 7%, and 7 months registered gains overall.<\/strong><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-323163\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2023\/05\/3May2023-2-1.jpg\" alt=\"\" width=\"860\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Stop-loss_Strategy\"><\/span>Stop-loss Strategy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Stockchase Research Editor, Michael O\u2019Reilly, attributes the success of the model portfolio to a unique strategy that includes setting a \u201cstop-loss\u201d on every position along with a profit objective. This is in addition to a selection process that focuses on solid fundamentals of cash flow, return on equity, and relative valuation.<\/p>\n<p>The profit objective is a stock price level analysts have collectively suggested for a 12 month target and generally targets 18% return or higher. When the stock achieves this objective, O\u2019Reilly recommends taking profit on half of the position. The balance of the position is then allowed to trade higher with no further upside profit trigger to cover the position \u2013 \u201cthus allowing the winners to run\u201d, he says.<\/p>\n<p>The stop-loss is a price point at which the position should be exited if the stock prices falls below that trigger point. It is set using a method that takes into account the underlying trend of the stock price and the volatility that stock typically trades within. The stop is reviewed regularly and often increased (or trailed higher) over time \u2013 it is never lowered from its original entry.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Capital_Preservation\"><\/span>Capital Preservation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>\u201cThis ensures capital is preserved in the event of an unforeseen negative change in the overall market direction or within the fundamentals of the company\u201d, says O\u2019Reilly. \u201cBy regularly reviewing the stop level and trailing it higher over time, it also protects capital from being trapped in a stock that is not continuing to advance\u201d, he adds.<\/p>\n<p>The Panic-Proof Portfolio uses a Parabolic SAR (Stop-And-Reverse) indicator to establish the stop level to exit a position. The indicator was developed by J. Welles Wilder Jr. \u2013 the creator of the Relative Strength Index (RSI) indicator. O\u2019Reilly applies the calculated stop level of the indicator using a weekly candlestick technical chart. When applied on a technical chart it provides a series of estimates of an appropriate stop over time.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-323164\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2023\/05\/3May2023-3-1.jpg\" alt=\"\" width=\"860\" \/><\/p>\n<p>\u201cI\u2019ve relied on the Parabolic SAR in my 35 years of personal investing and as a professional commodity analyst and trader during my career. It is also very useful to help understand major market trends when combined with Elliot Wave theory.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Where_will_the_market_go_in_2023\"><\/span>Where will the market go in 2023?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>\u201cSo far our Panic-Proof Portfolio is rallying along with the likes of the TSX through end-March (up about 3%), but lagging behind the bounce of the NASDAQ and S&amp;P 500. I\u2019m encouraged by the rally of the markets overall from the lows last October. However, there are many fundamental headwinds still to be dealt with \u2013 inflation and recessionary fears continuing to be front and centre. I think we will be grateful again to follow a strategy that recommends a cautious approach.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_get_access_to_the_Panic-Proof_Portfolio\"><\/span>How to get access to the Panic-Proof Portfolio?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>You&#8217;re missing Mike&#8217;s recommendations if you&#8217;re not a Premium member. Get access to Mike&#8217;s Panic-Proof Portfolio every Monday and Wednesday, plus more features on Stockchase by subscribing today!<\/p>\n<p style=\"border-style: dashed; border-color: #FF4132; margin: 5px; padding: 15px; text-align: center; font-size: 18px;\"><a style=\"background-color: #ff3c43; -moz-border-radius: 28px; -webkit-border-radius: 28px; border-radius: 28px; border: 1px solid #ff3c43; display: inline-block; cursor: pointer; color: #ffffff; font-family: Arial; font-size: 17px; padding: 16px 31px; text-decoration: underline; text-shadow: 0px 1px 0px #ff3c43; margin-top: 3px;\" href=\"https:\/\/stockchase.com\/premium\/?source=internal&amp;type=page-element&amp;name=nav-unlock-premium\"><strong>Become a Premium member today!<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A year to forget? 2022 was a year most equity investors will likely want to forget as markets saw some of the largest bear retracements since the financial crisis of 2008. The outlook for corporate earnings grew uncertain with ongoing [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":324256,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cwp_meta_box_check":"No","cwp_rev_product_name":"","cwp_rev_product_image":"","wppr_links":[],"cwp_rev_price":"","wppr_options":[],"wppr_pros":[],"wppr_cons":[],"footnotes":""},"categories":[58],"tags":[],"class_list":["post-323160","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-updates"],"wppr_data":{"cwp_meta_box_check":"No"},"_links":{"self":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/323160","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/comments?post=323160"}],"version-history":[{"count":0,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/323160\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media\/324256"}],"wp:attachment":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media?parent=323160"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/categories?post=323160"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/tags?post=323160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}