2021 Performance

Happy new year!

2021 was certainly an interesting year for Formula Stocks.

During January and February, we saw some slight declines in our portfolio value, followed by a big increase in April and May with our portfolio being up +39.63% at the end of May and our flagship product up +40.63% by the end of June.

However, we did end up giving some of those gains back between summer and now ending the year with a +6.45% return on our entry-level portfolio and a +16.50% return on our flagship model.

While many investors would be happy with this and we certainly still outperformed many funds this year like all of Cathie Wood's Ark funds. We failed our goal to outperform the S&P500 during 2021.

During the same period, the S&P500 increased in value from $3,824 to $4,780 an increase of +25% an unusually high return for the S&P500.

That being said the losses we did see during H2 of 2021 were not realized. While the stock prices may have come down our algorithms still see value in the companies and expects them to outperform in the future.

In fact, every stock we sold during 2021 was sold with profit.

The current portfolio

Our portfolios are still heavily weighted towards Precious metals holding a large allocation in gold and silver mining companies. We still believe this sector will see a lot of value with the upcoming inflation and it's a great hedge against a potential recession in 2022.

We currently hold 

• Entry: 15 stocks in the portfolio
• Premium: 15 stocks in the portfolio
• Flagship: 19 stocks in the portfolio
• Fund: 24 stocks in the portfolio

With the following # currently in the green.

• Entry: 9 / 15 stocks have unrealized gains up to +113.52%
• Premium: 13 / 15 stocks have unrealized gains up to +113.84%
• Flagship: 16 / 19 stocks have unrealized gains up to +250.41%
• Fund: 20 / 24 stocks have unrealized gains up to +219.23%

In comparison looking at the worst unrealized losses:

• Entry's unrealized losses are between -0.54% and -14.00%
• Premium: unrealized losses are just -0.50% and -0.59% 
• Flagship: unrealized losses between -0.53% and -1.71%
• Fund: unrealized losses are between -1.09% and -12.28%

This goes to show that our heavily skewed risk to reward ratio has still been holding up very well during 2021 despite the tough Q3 and Q4 periods.

Strategy improvements

This was a year with subtle but great improvements to our overall investment strategy and stock picking algorithms.

We've added new safety features to reduce risk such as identifying new types of potential accounting fraud in the financial statements Formula Stocks evaluate. As well as minor performance improvements throughout the system.

New website

Our team has spent the last year going through all the feedback we've received and built a new website for Formula Stocks that is easier to use and find what you need and further increase our transparency now showing the history of our trades and adding more information about the strategy as well as a new articles section.

New year: 2022

From the team at Formula Stocks, we all wish you a happy new year as we keep working towards providing the best stock signal service in 2022.