So just how is the Prosper marketplace doing?

If you have been following these advertisements for NexuSys? you know that the reported investment returns for the best of the NexuSys? portfolios dropped a bit during the heart of the financial crisis.

Since then it has recovered nicely.

One thing you need to know about the analysis is that even loans in good standing are reduced in value significantly to adjust for pending or possible defaults. The result is that even if a given loan is current the presence of that loan in a portfolio can reduce the analyzed rate of return. But, as the economy changes and hopefully improves, the same portfolio will report a better rate of return.

This is a very different approach to investment analysis. Normally, investors and even advisers mistakenly assume that a loan in good standing is actually worth its book value. This is not the case however. Certainly not if you consider the fact that even a note in good standing can go into default. No doubt those investors who have held real estate mortgages over the last several years have found that out the hard way.

The best of the NexuSys? portfolios have never had a reduction in their value below the initial investment. Oh, it is true that individual loans have gone into default. But, across the best of the NexuSys? portfolios that has not occurred at all. And that is true even during the worst of the financial crisis.

So how have the NexuSys? portfolios faired?

Over all the Prosper marketplace is below water. So Prosper investors as a whole have experienced losses of somewhere between -1% and -3% per annum all during the last 3-5 years. Not very attractive as an investment until you compare that rate of loss to the stock market in general. Or, perhaps even the bond market.

Today, any investor now that can claim to have only lost 3% per annum over the last three years thinks he is doing great. Maybe a few even went short at just the right time. But, the vast majority of investors have not faired very well over the last 3-5 years.

Following the NexuSys? portfolios would have resulted in rates of return in the double digits. The best of the NexuSys? portfolios actually show between 14 and 15 per cent per annum right through the middle of the crisis. And that is after the adjustment for defaults. At one point it was down to about 8.5% per annum. But, recently the economy has recovered a bit and the latest figures report nice double digit growth rates. And the rates are comprehensive. It was not a year or two at only 8% or so and now back to 14% or so. Rather it has been 14% per annum all along.

Sounds almost too good to be true. But, the NexuSys? portfolio analyzes are detailed enough that you can verify it for yourself. It does take some effort. It does take some expertise. But, the result of doing so is truly enlightening.

And yours truly is there to help you through the process.

Today the big question is whether the economy will suffer a double dip recession. And the experts all have their opinion. Interestingly enough, if you can understand what the NexuSys? analysis is telling you, it may not matter.