Random comments

 

Best complement. My late mother enjoyed Wheel of Fortune a lot, so are most folks. She did not even know English except the alphabets.

 

The only song I can sing in public is “Sound of Silence”. If you understand my joke, sing it with me silently.

 

The $25 per hour wage can never compete with a $5 wage, same for $5 wage to a $1 wage. Moving factories to other countries such as S.E. Asia would increase pollution as most of these countries may not care about pollution.

 

We can do our part by not changing our mobile phones every year and live in smaller houses like apartments in China and many other countries.

 

Who is going to work with such generous welfare benefits and free money? This is why we have a supply-chain problem.

Value or Momentum?

 

When the market favors value, buy an ETF on value stocks, and vice versa. You can determine the trend of the corresponding ETF via SMA-10 and SMA-50 from Finviz.

 

The following is my test results using EY, Expected Earnings Yield (Price/Expecting Earnings) and a Timing Rank provided by a vendor. EY is a primary value matric.

 

The data could be a little off and they are used for illustration purposes. I am not responsible for any errors.

 

I included the stocks in the three major exchanges only. I had 4 tests in 1 year for 2 years. I selected the top 10 stocks or less if not available and got the return after one year (usually a few days off). RSP (an evenly weighted ETF for the S&P 500 stocks) is used as a yardstick.

 

	EP	Timing Rank	RSP
01/03/2019	58%	2%	29%
04/01/2019	120%	-40%	-24%
07/01/2019	-49%	7%	-6%
10/01/2019	-26%	14%	2%
01/03/2020	-9%	152%	9%
04/01/2020	540%	71%	79%
07/01/2020	388%	83%	49%
10/01/2020	186%	7%	40%
Average	151%	37%	22%

 

Comments.

 

·         The market has been great for these two years. It is obviously a bull market. Performances are better by selecting stocks (active management) than buying the entire S&P 500 stocks.

·         Value investing is better than Momentum investing during the test periods.

·         I double checked on the incredible 540% and 186% returns and I did not find any error.

I also find the percentages of losers, maximum and minimum values for both EP and Timing Rank (not listed here).