One of the good things about blogging is that you get to learn from your readers as well. A reader introduced me to the Bounceback Portfolio and requested me to carry out a review of it in Singapore's context. The idea of the Bounceback Portfolio is that a portfolio of the 10 worst performing FTSE350 stocks in one year has historically beaten the index in the first three months of the following year.

However, when I apply the idea in Singapore's context, I faced 2 issues immediately. Firstly, the corresponding index to FTSE350 is actually the FTSE ST All-share Index. Unfortunately, I am unable to find the component stocks of this index. The next best comparison is the Straits Times Index (STI). However, it has only 30 stocks. Selecting 10 out of 30 stocks might not reflect correctly the concept of the Bounceback Portfolio. On the other hand, if ...