I think I may have jinxed the stock market. No joke.
A month ago, I asked my kids to each pick 10 stocks and we would track them in a virtual portfolio to see if they could outperform the market indices. How did they fare?
I have been pretty smug lately about my stock picking prowess. The stock markets have performed well this year that I started to wonder if maybe it was just dumb luck that I have done so well. It has been a bit like shooting fish in a barrel. The kid’s stock picks (a.k.a. The Monkey Portfolios) are intended to prove my hypothesis.
I also want to mention–as soon as I started tracking the monkey portfolios the stock markets started to quiver. I thought, “Oh great! I will be personally responsible for the next market correction because I have angered the market gods with my blog nonsense.” Time will tell if this is true.
How did they fare? Portfolio Update.
Portfolio 1 underperformed
Portfolio 2 kicked butt.
All screenshots from google finance.
The Very Scientific Lessons Here:
- Younger children are better at picking winning stocks than older children.
- Adults should consult children when rebalancing their portfolios.
Have I proved my theory? Not as well as I had hoped but I suppose I should not be trying to prove stock market theories with one month worth of data.
- In hindsight I should have picked 10 stocks for myself to show that my kids are smarter than me.
- I also could have put together a portfolio based on recent buy recommendations from fancy-pants stock analysts to further prove my hypothesis.
Too late for that now, but I might try that exercise in the future. In the meantime, I will continue to track the monkey portfolios and see if they outperform.
My own real portfolio is a mix of larger companies that have a history of regular dividend payments. I have been slowly transitioning into ETF’s though, because I know my kids are better stock pickers than I am.
Wishing you a happy and prosperous New Year!