https://i.imgur.com/1t0OvhG.png
Someone posted the nine most commonly held stocks in Robinhood portfolios recently and well to no one’s surprise there’s a lot of junk in there, but what do they say “anyone can make money in a bull market”. I was curious to how they performed, so I created an equal-weight portfolio and backtested through 2019 to find out how it did on a risk adjusted basis compared to different sectors. And well, it’s ugly.
In short the virtual portfolio took on an additional 42% of market risk compared to a 100% SPY portfolio in 2019, and trailed in risk-adjusted returns returns by over 40%. Ouch.
For anyone curious the 9 most popular for 2019 were: ACB, GE, F, FIT, MSFT, AAPL, GPRO, CRON, AMD
Submitted December 31, 2019 at 06:07PM by moneyonfireapp https://ift.tt/2F6mIBF
