The YELLOW strategy is a bit more complicated
The YELLOW strategy is a bit more complicated. The avistocks program did not select a single stock for the YELLOW strategy yesterday. Therefore, this strategy’s account currently consists only of cash:
We’ll keep an eye on things, and when the avistocks program selects any shares based on the YELLOW strategy, we’ll buy them and let you know.
It is important to note that the fact that the YELLOW strategy did not select any stocks means that there are no stocks on the market that meet the criteria of this strategy. Moreover, the program has selected only a few stocks for the other strategies as well, as we can see from the small number of stocks in their portfolios. This means that at present the market is somewhat overheated, and there are very few good stocks available at reasonable prices.
Therefore, the very fact that the YELLOW strategy did not select any shares may indicate that now is simply not the best time to invest. If that is the case, keeping the investor’s funds in cash may actually be a good strategy. In any case, we’ll be keeping an eye on how things unfold.
Two years of observation
Now we have 2 years of observation ahead of us without taking any action (except for the YELLOW strategy). There will be no changes to our portfolios for two years. In a month, we’ll review how the assets in our portfolios have changed.
It’s worth comparing asset performance against the benchmark - the S&P 500 index. We’ll track its performance using the VOO ETF, which tracks the S&P 500. At the market open on 22.10.2024, one VOO share was priced at 534.35. This means that with 10,000, you can buy 18 VOO shares, leaving $381.70 in cash. Thus, the portfolio of a hypothetical alternative investor who passively invests in a market index will consist of 18 VOO shares and $381.70 in cash. We will use this portfolio as a benchmark against which to compare the portfolios created using our strategies.
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