Index

I have commented for some time that Magic Formula Investing can be a bit streaky. It seems there are stretches it outperforms and periods it under-performs. I am going to try and build an index to track this. I did it back to the start of 2010. I will try to go back to 1/1/2009 this weekend. Here is the index during the year. It has had a very high correlation to the Russell 3000 this year. The index will simply be comprised of the 50 stocks greater than 100m at the start of each year. The table below shows that 7/19 has been the low point of the year, where MFI trailed IWV by 3.2 points. It looks like Jan 22nd (very early) was the peak at +2.6%.

MG

Date	MFI	IWV	Diff
11/10/2010	13%	12%	0.009
11/9/2010	13%	12%	0.013
11/8/2010	14%	13%	0.011
11/5/2010	13%	13%	0.003
11/4/2010	13%	12%	0.004
11/3/2010	11%	10%	0.009
11/2/2010	11%	10%	0.008
11/1/2010	8%	9%	(0.005)
10/29/2010	9%	9%	0.001
10/28/2010	8%	9%	(0.009)
10/27/2010	7%	9%	(0.015)
10/26/2010	8%	9%	(0.009)
10/25/2010	8%	9%	(0.011)
10/22/2010	7%	9%	(0.011)
10/21/2010	6%	8%	(0.018)
10/20/2010	7%	8%	(0.010)
10/19/2010	5%	7%	(0.015)
10/18/2010	8%	9%	(0.009)
10/15/2010	7%	8%	(0.010)
10/14/2010	7%	8%	(0.007)
10/13/2010	7%	8%	(0.008)
10/12/2010	6%	7%	(0.013)
10/11/2010	6%	7%	(0.011)
10/8/2010	5%	7%	(0.017)
10/7/2010	4%	6%	(0.025)
10/6/2010	4%	6%	(0.026)
10/5/2010	4%	6%	(0.020)
10/4/2010	2%	4%	(0.023)
10/1/2010	4%	5%	(0.016)
9/30/2010	3%	5%	(0.016)
9/29/2010	3%	5%	(0.017)
9/28/2010	4%	5%	(0.015)
9/27/2010	3%	5%	(0.021)
9/24/2010	3%	5%	(0.023)
9/23/2010	0%	3%	(0.023)
9/22/2010	1%	4%	(0.026)
9/21/2010	2%	4%	(0.023)
9/20/2010	3%	5%	(0.020)
9/17/2010	0%	3%	(0.026)
9/16/2010	0%	3%	(0.028)
9/15/2010	0%	3%	(0.029)
9/14/2010	0%	2%	(0.025)
9/13/2010	0%	3%	(0.021)
9/10/2010	-1%	1%	(0.027)
9/9/2010	-2%	1%	(0.028)
9/8/2010	-2%	0%	(0.025)
9/7/2010	-3%	0%	(0.027)
9/3/2010	-1%	1%	(0.018)
9/2/2010	-2%	0%	(0.018)
9/1/2010	-3%	-1%	(0.017)
8/31/2010	-6%	-4%	(0.015)
8/30/2010	-5%	-4%	(0.011)
8/27/2010	-3%	-3%	(0.004)
8/26/2010	-5%	-5%	(0.002)
8/25/2010	-5%	-4%	(0.009)
8/24/2010	-6%	-4%	(0.016)
8/23/2010	-5%	-3%	(0.020)
8/20/2010	-4%	-2%	(0.016)
8/19/2010	-4%	-2%	(0.019)
8/18/2010	-2%	0%	(0.012)
8/17/2010	-2%	-1%	(0.017)
8/16/2010	-3%	-2%	(0.013)
8/13/2010	-4%	-2%	(0.016)
8/12/2010	-3%	-2%	(0.010)
8/11/2010	-3%	-1%	(0.017)
8/10/2010	0%	2%	(0.016)
8/9/2010	2%	3%	(0.010)
8/6/2010	1%	2%	(0.011)
8/5/2010	1%	3%	(0.011)
8/4/2010	3%	3%	0.002
8/3/2010	2%	2%	0.003
8/2/2010	3%	3%	0.006
7/30/2010	1%	0%	0.012
7/29/2010	1%	0%	0.009
7/28/2010	0%	1%	(0.005)
7/27/2010	2%	2%	0.002
7/26/2010	2%	2%	0.001
7/23/2010	0%	1%	(0.010)
7/22/2010	-2%	-1%	(0.019)
7/21/2010	-5%	-3%	(0.026)
7/20/2010	-4%	-2%	(0.028)
7/19/2010	-6%	-3%	(0.032)
7/16/2010	-6%	-3%	(0.032)
7/15/2010	-3%	0%	(0.028)
7/14/2010	-3%	0%	(0.026)
7/13/2010	-3%	0%	(0.023)
7/12/2010	-5%	-2%	(0.029)
7/9/2010	-4%	-2%	(0.017)
7/8/2010	-5%	-3%	(0.021)
7/7/2010	-6%	-4%	(0.025)
7/6/2010	-8%	-7%	(0.017)
7/2/2010	-7%	-7%	(0.001)
7/1/2010	-6%	-7%	0.000
6/30/2010	-6%	-6%	0.004
6/29/2010	-5%	-5%	0.004
6/28/2010	-1%	-2%	0.005
6/25/2010	-1%	-2%	0.002
6/24/2010	-3%	-2%	(0.010)
6/23/2010	-2%	0%	(0.012)
6/22/2010	-2%	0%	(0.013)
6/21/2010	0%	2%	(0.016)
6/18/2010	1%	2%	(0.011)
6/17/2010	1%	2%	(0.009)
6/16/2010	1%	2%	(0.004)
6/15/2010	1%	2%	(0.005)
6/14/2010	-1%	0%	(0.003)
6/11/2010	-1%	0%	(0.002)
6/10/2010	-2%	-1%	(0.009)
6/9/2010	-4%	-4%	(0.004)
6/8/2010	-5%	-3%	(0.010)
6/7/2010	-5%	-4%	(0.003)
6/4/2010	-2%	-3%	0.009
6/3/2010	2%	1%	0.012
6/2/2010	1%	0%	0.009
6/1/2010	-1%	-2%	0.011
5/28/2010	2%	0%	0.022
5/27/2010	3%	1%	0.018
5/26/2010	-2%	-3%	0.011
5/25/2010	-1%	-2%	0.008
5/24/2010	-1%	-2%	0.014
5/21/2010	0%	-1%	0.007
5/20/2010	-1%	-2%	0.012
5/19/2010	4%	2%	0.021
5/18/2010	5%	2%	0.025
5/17/2010	6%	4%	0.019
5/14/2010	5%	4%	0.015
5/13/2010	7%	6%	0.017
5/12/2010	8%	7%	0.009
5/11/2010	5%	5%	(0.005)
5/10/2010	4%	5%	(0.011)
5/7/2010	0%	1%	(0.008)
5/6/2010	3%	3%	0.001
5/5/2010	6%	6%	(0.002)
5/4/2010	8%	7%	0.007
5/3/2010	11%	10%	0.012
4/30/2010	9%	8%	0.013
4/29/2010	12%	10%	0.016
4/28/2010	10%	9%	0.016
4/27/2010	10%	8%	0.018
4/26/2010	12%	11%	0.013
4/23/2010	12%	11%	0.008
4/22/2010	11%	10%	0.010
4/21/2010	11%	10%	0.008
4/20/2010	10%	10%	0.003
4/19/2010	9%	9%	0.003
4/16/2010	9%	9%	0.005
4/15/2010	10%	10%	(0.002)
4/14/2010	10%	10%	(0.003)
4/13/2010	8%	9%	(0.003)
4/12/2010	8%	9%	(0.005)
4/9/2010	8%	8%	(0.007)
4/8/2010	8%	8%	(0.002)
4/7/2010	8%	7%	0.006
4/6/2010	8%	8%	(0.001)
4/5/2010	7%	8%	(0.003)
4/1/2010	5%	7%	(0.013)
3/31/2010	5%	6%	(0.012)
3/30/2010	5%	6%	(0.009)
3/29/2010	6%	6%	(0.005)
3/26/2010	5%	6%	(0.003)
3/25/2010	5%	6%	(0.001)
3/24/2010	6%	6%	0.005
3/23/2010	7%	6%	0.007
3/22/2010	6%	6%	0.008
3/19/2010	6%	5%	0.007
3/18/2010	6%	6%	0.004
3/17/2010	6%	6%	0.005
3/16/2010	6%	5%	0.008
3/15/2010	5%	4%	0.009
3/12/2010	6%	4%	0.014
3/11/2010	6%	4%	0.013
3/10/2010	5%	4%	0.013
3/9/2010	4%	3%	0.009
3/8/2010	5%	3%	0.014
3/5/2010	4%	3%	0.009
3/4/2010	3%	2%	0.014
3/3/2010	2%	1%	0.010
3/2/2010	2%	1%	0.008
3/1/2010	1%	1%	0.007
2/26/2010	0%	0%	0.005
2/25/2010	0%	0%	0.009
2/24/2010	0%	0%	0.004
2/23/2010	0%	-1%	0.010
2/22/2010	1%	0%	0.010
2/19/2010	1%	0%	0.012
2/18/2010	1%	0%	0.011
2/17/2010	0%	-1%	0.005
2/16/2010	-1%	-1%	0.004
2/12/2010	-2%	-3%	0.007
2/11/2010	-3%	-3%	0.000
2/10/2010	-4%	-4%	(0.005)
2/9/2010	-4%	-4%	(0.002)
2/8/2010	-5%	-5%	(0.000)
2/5/2010	-5%	-4%	(0.004)
2/4/2010	-4%	-5%	0.007
2/3/2010	-1%	-1%	0.007
2/2/2010	-1%	-1%	(0.001)
2/1/2010	-3%	-2%	(0.006)
1/29/2010	-4%	-4%	(0.001)
1/28/2010	-3%	-3%	(0.000)
1/27/2010	-1%	-1%	0.005
1/26/2010	-1%	-2%	0.007
1/25/2010	1%	-1%	0.023
1/22/2010	1%	-2%	0.026
1/21/2010	2%	0%	0.021
1/20/2010	4%	2%	0.019
1/19/2010	5%	3%	0.021
1/15/2010	4%	2%	0.021
1/14/2010	5%	3%	0.021
1/13/2010	4%	3%	0.015
1/12/2010	4%	2%	0.022
1/11/2010	5%	3%	0.024
1/8/2010	5%	3%	0.020
1/7/2010	4%	2%	0.014
1/6/2010	4%	2%	0.016
1/5/2010	3%	2%	0.010
1/4/2010	3%	2%	0.010
12/31/2009	0%	0%	-