Model Portfolio Chart Formulation
Our Model portfolio is a hypothetical portfolio. That is to say, we do not run a portfolio exactly like the one we use as our “Model” portfolio. As such, we make the following assumptions:
- Various Sector allocations are chosen (producing gold and silver stocks, gold and silver exploration stocks, inflation hedge stocks such as energy and base metal mining stocks, and essential technology stocks.
- At the start of the year a portfolio allocation is made for each of these sectors.
- It is assumed that each stock within each sector is constantly equally weighted. This is true for those stocks that gain as well as those that lose.
- The total gain for a given sector is simply the sum of all the gains and losses divided by the number of stocks in that sector.
- Gains are not annualized. So for example a stock that was recommended on December 1, and gains 100% by the end of the year is weighted no greater than another stock that was recommended on January 1st and rose by 100% by December 31st. The Model Portfolio’s gain or loss for the year is simply the total of gains for each sector multiplied by the gains or losses of all sectors.