Back on July 1st, ten XOM shares were purchased for $88.05 per share totaling $880.50, and $86.17 in cash was leftover.
Now, Exxon Mobil (XOM) is no longer the top stock in the S&P 100, and Friday, July 29th was the last trading day of July. The XOM shares were sold at a profit for $96.77 for a total proceeds of $967.73. Along with the leftover cash of $86.17, there was a grand total of $1,053.50 in cash on balance.
The starting testing balance on May 3, 2021 was $1,001.66 so this strategy has returned 5.2 percent over the last fifteen months. Please see the following list of stocks used along with the ending balance for each month.
For comparison, the S&P 500 exchange traded index fund, SPY, has returned 0.3 percent over the same time, including dividends. Even though the market rebounded in July as the SPY ETF was up 9.2 percent over the month, the strategy has still outperformed the market. This is illustrated by the following graph.
The market bounced on hopes the Federal Reserve may be nearing an end to its interest rates cuts, as economic indicators have cooled in recent months. But it’s still not clear when Fed will actually stop raising rates.
The New Top Stock is No Longer an Oil Stock
T-Mobile US Inc. (TMUS) is the new top stock and needs no introduction. Remember, in order to narrow the field, the top performing stock over the last 6 months in the S&P 100 index is selected.
On Monday, August 1st, fourteen shares of TMUS were purchased for $143.22 for a grand total of $2,005.07. Since the strategy has outperformed the S&P 500, more money will be allocated. This means 1) the strategy is working and 2) I am expecting the market to perform better over the next 12 to 15 months. Please check back at the end of August for an update.
