Below is our performance since the inauguration of our portfolio, SI Portfolio on August 19th, 2014. SI stands for Sonoman Investments and has achieved a return of 5.55% without considering fees or dividends vs the S&P 500 Total return of 3.39%.
The S&P 500 stands for Standards and Poor 500 large companies listed in the NYSE and NASDAQ. Many consider it to be a good indicator of the stock market and benchmark when comparing performances.
One thing you should know is that forecasting is extremely difficult to predict, if not almost impossible. There are no certitudes in the market given that sometimes it is ruled by psychological behaviors and emotions. What we could rely on is history, some of the largest and shortest expansions or bull markets.
A bull market is a period of general rise in prices. Bear markets follow bull markets and vice-versa; defined as periods of decline in prices. A bear market is usually defined as a 20% decline or more from a previous peak.
Since the recession of 2009, we have been in a bull market that has lasted six years and is up approximately 200%. Is this a long period or short period?