Eric Boughton_

The 'Junk Stock' Rally

Speaking of a 'junk rally', here's a fact: had you purchased the lowest-priced decile of all Russell 3000 stocks as of March 9th, equal-weighted, you would have had a 423% return through September 30! No joke. Had you simply pulled all 3000 (roughly) tickers, sorted by closing price on March 9th, and bought just $100 worth of each of the 300 lowest-priced stocks, your $30,000 investment in this diversified portfolio would have been worth $157,000 on September 30. Regret, anyone? Anyone think there might be some short candidates on that list?