Value Line Investment Survey - save 50% off your subscription.
Value Line Investment Survey
Value Line Investment Survey is one of the most trusted source
of investment ratings for institutional and individual
investors.
Value Line provides many measures for each stock but its
flagship rating is the Timeliness. Timeliness ranks 1700 stocks
based on a combined score of Earning growth, Earning surprise
and price momentum. Stocks are given a Timeliness rank between 1
and 5 with 1 being best and 5 being worst. Stocks with
Timeliness rank #1 are expected to outperform the market in the
next 6 months to 1 year.
A portfolio made of stocks with Timeliness rank #1 (include 100
stocks) would have you earned 14.1% from 1965 to 2005 while the
S&P500 earned 6.7% during the same period. No wonder Value Line
is so popular.
Now, Value Line carries a hefty price: it costs almost 600$ per
year and their service is therefore not accessible to many
individual investors.
How to save 50% off the Value Line subscription.
The stock market has generally performed much better during the
2nd part of the US presidential election cycle that spans over 4
years (the election taking place at the end of year 4). Here are
the average returns of a portfolio made of stocks with Value
Line Timeliness rank #1 over the 4 years of the presidential
cycle:
Value Line Timeliness Rank #1 performances during the
presidential cycle:
- Year 1: 11.7% (standard deviation: 21.1%)
- Year 2: 03.4% (standard deviation: 18.1%)
- Year 3: 31.9% (standard deviation: 16.3%)
- Year 4: 17.2% (standard deviation: 19.3%)
As you can see, it is not worth investing in Value Line in
years 1 and 2 of the presidential election cycle. The reward to
risk ratio is very low: risk (standard deviation) is high
compared to the return. You'll perform as well by simply
investing in an index fund mirroring the market during this
period, or even just going to Money Markets or Bonds. However,
in years 3 and 4, then Value Line Timeliness really stands out.
Here you go: you can slash 50% off your Value Line subscription
by just subscribing in years 3 and 4 of the presidential
election cycle. The next year 3 is 2007.
One more tip: many stock market strategies are highly
correlated. Investing in a portfolio of stocks with Value Line
Timeliness rank 1 has a correlation of 85% with the S&P500.
Therefore combining Value Line strategy with most successful
Market Timing systems - such as the presidential cycle - will
work.
To learn how to effectively reduce the Value Line Timeliness
rank 1 Investing Universe of 100 stocks to a more practical
number, visit Stock Ratings