Investors Alliance - Home of Power Investor® - Founded in 1987
June 20,2010 Early Warning System Historical Returns and Update
Written by Frank Lardino
We wanted to post an update showing the returns for the EWS system for 1999 to 2009 plus the most recent year.We will be posting the year to date returns soon.Members should note that the next EWS switch will occur on July 1, 2010.Also we will be launching the new Gold System in a few weeks.
EWS was developed by Frank Lardino and the research started in 1995.The fuller system was in operation in 1999.In the early years, ETFs lagged a bit behind the market because the universe of ETFs that was available was small.Around 2002-2003, the number of ETFs grew and the EWS ETF portfolio had a gain of +43.7% in 2003 versus +28.6% for the S&P 500 index.
We have listed the historical returns below.This web site has more details on EWS.If you are not a member you can join by clicking the order button on the top right of this screen.
Annualized Returns
YearETF EWSMF EWSS&P 500
1999-2009+11.2%+20.2%+2.7%
2003-2009+21.8%+22.2%+8.3%
2009 +22.0%+26.6%+25.6%
As you can see the ETF EWS beat the S&P 500 by 4.1 to 1 over the past 11 years while the EWS Mutual Fund system beat the S&P 500 by over 7.5 to 1.The 11 year return for the EWS Mutual Funds is pretty staggering.What is even more amazing is the Mutual Fund EWS portfolio only had one down year during this 11 year period versus 4 down years for the S&P 500.
Gold System Coming Soon – Update June 20, 2010
This is an update on the Gold System created by Frank Lardino. The system uses four of the largest gold companies. We will have a listing of the companies soon but for now we will disguise their names.
Many investors today believe gold is a one decision investment where investors just buy and hold. We disagree with that approach because we think our approach is superior.
2010 Year to Date: (June 19, 2010)
Stock Year to Date %
Stock A +30.6%
Stock G +17.6%
Stock G2 +24.1%
Stock N +33.5%
Stock Years Avg. Return (%)
Stock A 2001-2009 +24.6%
Stock G 2004-2009 +31.7%
Stock G2 2004-2009 +37.2%
Stock N 2004-2009 +13.7%
What is very impressive about the system is that is has no negative years. What is even more impressive is that the positions are held for an average of about two weeks. There are a few trades per year and an investor would be sitting safely in a money market for about 295 days out of the year.
We will be announcing the Gold System for Gold and Platinum members very soon. Frank Lardino has said this is one of his favorite systems.