The "Bouncers" Rebound Strategy, based on research we conducted in "Anatomy of a Crash", is performing incredibly well since the turn of the market in the trough of 3 March 2009.
A YTD analysis of the performance of the two 60-day old rebound strategies "A.Rank Combo" and "B.Top100" are displayed below. DECLINE represents each shares' decline in the 22 May 2008 to 3 March 2009 peak-to-trough and YTD RISE represents their subsequent growth out the trough up till 5 May 2009.
These strategies are expected to outperform whatever recovery the ALSH makes by a factor of 2-3, and currently they are outperforming the ALSH by 2.1 and 2.46 respectively. We believe the strategies are good for any ALSH recovery up to 50% and so we are less than halfway there which means you still have time to take advantage of this rare event.
Don't make the common mistake and think that because SAPPI dropped 87.2% and then rose 74.6% that it is "game over" or "lost opportunity" - SAP needs to grow 833% from the 3 March trough to recover its losses, so currently it has only recovered 10% of its losses! Similarly, R1 worth of AGL dropped 74.4% to R0.25c and then rose 40.1% to R0.35c so there is PLENTY of upside left!