The Keller Ridiculous Adoration Portfolio (KRAP) is, essentially, a stock index like the S&P 500 or the Russell 2000, except with the minor aspect of me having just made it up a few days ago. It is definitely not my actual trading portfolio, and if it were, I would probably give serious consideration to changing it soon. I just call it "portfolio" because it makes the acronym better.
The index's value is equivalent to that of owning 1 share of AAPL, 1 share of CMG, 1/2 share of GOOG, 5 shares of LULU, and 10 shares of CROX. The reason for these particular companies is that they are go-go stocks, media darlings, etc. While AAPL and GOOG's valuation is understandable, there seems to be little more than speculation over the other three stocks in the index. It is a valid index up until the day at which LULU (the last of these stocks to IPO) had its IPO - July 27, 2007.
The weekly close on the first day of validity was 1105.50. It closed out the week of October 26, 2007 (aka peak stocks) at 1471.90, before falling with the Great Recession to 284.19 the week of November 21, 2008 - a loss of over 80%. Since then, it has risen - skyrocketed, even, particularly in the last month: On June 13, 2011, the index stood at 1288.91, its lowest value since the end of March. On July 22 (last Friday), the index closed at 1637.54 - an increase of 27% in six weeks!
Ahh, wave 5 speculative hysteria... how amusing you are. Shame this wasn't my real portfolio, or I'd be taking profits right now.
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