Extreme Fear eases – Momentum stocks roar back — Update 12/01/25

Extreme Fear in the US stock market eased last week and we saw the three Quant model portfolios rally up strongly. Quant Alpha Weekly rose from +9% to +31%. Quant 30 rose from +7% to +17%. Quant Alpha’s Legacy rose from +238% to +275%.

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Performance to 11-28-2025

Portfolio start date 6/27/25
Quant Alpha Weekly31.45%
EQAL (Russell 1000 Equal Weight ETF)7.92%
Portfolio start date 6/27/25
Quant 3017.98%
EQAL (Russell 1000 Equal Weight ETF)7.92%
Portfolio start date 4/14/23
Quant Alpha’s – Legacy275.38%
EQAL (Russell 1000 Equal Weight ETF)31.68%

The Quant Alpha Weekly Portfolio remains ahead of its benchmark. Up over 31% since it began on June 27, 2025.

The Quant 30 Portfolio managed to close ahead of the benchmark once again. It is up 17% since it began on June 27, 2025.

The Quant Alpha’s – Legacy Portfolio maintained its over 250% return since April 2023, in a classic Position Trading Portfolio implementation.

After a correction of 10% in the US stock market what is the history of performance after 6 months?

  • Markets usually bounce back: After a 10% correction, the S&P 500 is historically up about 8–10% six months later.
  • Most outcomes are positive: Roughly 70–75% of six-month periods show gains after a correction — odds are in your favor.
  • Snapbacks can be sharp: Plenty of rebounds hit double-digit returns as panic sellers disappear and buyers step in.
  • Deeper dips = bigger recoveries: Corrections closer to 15–20% historically lead to even stronger six-month rebounds.
  • Only real trouble? Recessions: If the correction is tied to a full-blown recessionary bear market, the six-month recovery slows — but still isn’t reliably negative.

Bottom line — a 10% correction isn’t the end of the world. Historically, it’s usually the setup for the comeback.

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Source: CNN

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