27% Return in Single Paired Trade
That's right a 27% return in a single paired trade following the Purple Chips model. Members have followed up on our recent performance update to find out more about timing of entry and exit of trades and how we improve quality. We have been transparent with our market research and trading calls - all the better to improve our accuracy and keep us humble!
In this case, if you had stuck with the original low valuation signal we posted in February for Pepsi (see Post:Pepsi Bubbling Up – Low Valuation Signal), you would have purchased it at $63.25 and would now be holding it at $71.10, close to our original target. Not bad, you'd currently be working a 12.4% gain.
But, as members know, the Purple Chips model made the call in May to exit Pepsi at $68.90 (see Post: Switching Pepsi for Aflac), locking in a gain just under 9%, and instead invest in Aflac at $41. Aflac, a Top-25 pick now stands at $48.50, a current unrealized gain of 18%.
Total profit on the same capital - over 27% in 7 months.
Call it "recycling your profits", call it "turbo-charging" or "accelerating" - use any adjective you want, we like to call it a smart trade. One that decreases risk and improves total return. That's the hallmark of the Purple Chips model and our value to members.
John Schwinghamer examines this paired trade (03:05) in this video update below.