Spy Pro vs Bespoke 50

    Posted by sbaxman111 on 13th of Jul 2017 at 04:54 pm

    Bespoke developed a proprietary stock strategy to compete with the benchmark S&P 500 - the "Bespoke 50". Since its inception on 3-1-12 it is up 122.1% compared to the S&P's 76.0% (see below). After a one free month introduction, Bespoke will charge you $99 a month for its information. Its website calls this "a great deal".

    Without the advisory charge the Bespoke 50 takes $10,000 and turns it into $22,210 since 3-1-12. Recognizing that the current Spy Pro signals weren't in real time back in March 2012, the back tested trading dates do outperform the Bespoke approach by a wide margin. Without the $50 monthly fee for BPT being considered, a $10,000 initial hypothetical investment does compound to $49,202 using the Rydex unleveraged Russell 2000 long/short funds. No benefit was considered for cash, and no trading costs were considered in either example.

    Someone willing to take more risk and use the 200% leveraged RUT funds would have seen their hypothetical account grow to $166,925. My understanding  of the Bespoke 50 is that the strategy is invested in 50 stocks 100% of the time. Obviously the Spy Pro approach would have been in cash for a reasonable amount of time during this time frame - helping to reduce the inherent investment risk during this period of time.

    Of course, depending on the size of the account vale invested in the Bespoke 50, the $99 monthly fee over the past 5.26 years, and the trading costs could certainly have reduced the net account value to less than just holding an S&P 500 index fund on a buy and hold basis in a low cost no-load fund or etf. Also to be considered is the cost of liquidating 50 individual stocks in case you wanted to redeem the account vs just selling SPY, IWM, QQQ, etc.

     

    Very interesting, sbaxman, thanks for

    Posted by isplat on 13th of Jul 2017 at 05:03 pm

    Very interesting, sbaxman, thanks for doing the research and crunching the numbers.

    So the bottom line that  I take away from all of this is that BPT delivers by far the best value for money out there.

    Thanks Matt and Steve for your dedication to helping and, above all, EDUCATING your subscribers!

    Agreed.  Thanks for the analysis

    Posted by goap1207 on 13th of Jul 2017 at 05:15 pm

    Agreed.  Thanks for the analysis sbaxman and thanks to Matt and Steve for HUUUGE profits!!!! 

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