Screening Large Market Capitalization Stock Companies Performance For Long Term Investors

Long term investor losing money in this market

Everyday new investor comes into these market with a hope of making money. But, more then double leaves this market after losing money. This market is becoming more and more unpredictable difficult market for the retail investor to invest anything.
Good news become bad news as the hope of easing fades away. Bad news bring new hope of easing. Fundamental has been taken over by easing, euro zone debt worries, us debt ceiling worries, china slow down.

Since, 2007 there has been major crash in the stock market every year.
2008 - 2009, Housing bubble and financial crash,
2010 - Flash crash on Euro zone debt worries.
2011 - US debt ceiling crash and Euro zone debt crisis.

Its all about timing of investment. If your the lucky one and invested in the right stock at the right time you can make good money but if your timing is wrong and invested at the peak of crash.

We saw mini crash in May, 2012 and stock market wiped out all the gains it made in 2012. It took 4 month from December end to April for Dow to rally 1300 point but it took just May to sell off 1300 point. Since June 4th, Dow is up 840 point that's how this market is swinging and one. If you think, 2012 crash is over then wait for August  - October period, we could see even bigger crash unless ECB launches LTRO 3 or Fed comes up with QE3. So, how can one make money in this volatile market ? The simple answer given by analyst is "Keep your portfolio diversified". 

Lets analyse some of the major well known names in the stock market and their performance for 3 month, 6 month and see if this stocks could have made any money.

Financial Stocks
Stock Ticker (Current Price, 3 Month, 6 month )
1. JPM  ( $33.90, -21% , -9%)  From the peak this year, its down -26%
2. BAC ( $7.07, -15% , 0%)  From the peak this year, its down -28%
3. GS ( $94.16, -18% , -13%) From the peak this year, its down -26%
4. MS ( $12.78, -27% , -31%) From the peak this year, its down -37%
5. WFC ( $33.81, 2% , 11%) From the peak this year, its down 0%
6. BCS ( $9.91, -28% , -29%) From the peak this year, its down -38%
7. HBC ( $41.71, -7% , -2%)  From the peak this year, its down -8%
8. IBN ( $33.86, 3% , -1%)  Too bored to calculate further, but from the peak stocks are down another 7%
9. FAS ( $85.03, -14% , 6%) Financial Bull ETF
10. FAZ ( $23.36, 5% , -21%) Financial Bear ETF

Clearly, WFC and FAS are winner in financial sector. Rest have underperformed and one could have easily lost money.


Energy Stocks
Stock Ticker (Current Price, 3 Month, 6 month )
1. CVX ( $109.19, 7% , 2%)
2. XOM ( $85.95, 1% , -2%)
3. BP ( $41.55, -1% , -6%)
4. COP ( $55.99, -23% , -21%)
5. SU ( $30.07, -4% ,-10%)
6. ERX ( $44.17, -3% , -13%) Energy Bull ETF
7. ERY ( $9.81, -9% , -5%)  Energy Bear ETF

Clearly, CVX is winner

Technology Stocks
Stock Ticker (Current Price, 3 Month, 6 month )

1. GOOG ( $610.82, -2% , 4%)
2. IBM ( $192.45, -4% , 2%)
3. DELL ( $12.01, -26% , -28%)
4. QCOM ( $57.68, -7% , 0%)
5. MT ( $30.11, -7% , 1%)
6. AAPL ( $604.08, 6% , 44%)
7. INTC ( $25.52, -8% , -3%)
8. HPQ ( $18.60, -24% , -34%)
9. RIMM ( $6.78, -49% , -60%)
10. NOK ( $1.71, -54% , -70%)
11. CSCO ( $16.36, -18% , -18%)
12. CRM ( $135.16, -14% , 18%)
13. BIDU ( $110.23, -24% , -11%)
14. RVBD ( $15.29, -23% , -47%)
15. ORCL ( $30.11, 4% , 5%)
16. SAP ( $61.53, -6% , 8%)
17. HON ( $57.74, -3% , -1%)
18. ROM ( $71.11, -11% , 7%) Bull Technology ETF
19. REW ( $38.79, 7% , -13%) Bear Technology ETF


AAPL and ORCL are winner.

More analysis will be done in next article on material, transportation, healthcare, utilities sector.

Fairy tales of  Stock market

But, it can be concluded that even long term investor would lose money even with diversified portfolio because people do like to own stocks of known names. With bad timing and buying at the top, one would be down additional 7% on an average. 

Tips:"Buy the dip, sell the rip." Atleast you won't be down 7% from the peak. It doesn't mean you buy every dip. Keep patience and wait for right opportunity.