Update On Our New Factor
Each day the market’s open, Portfolio Armor gauges stock and options market sentiment to rank securities by its estimate of their potential returns over the next six months. In an email last month, I mentioned adding a new factor to that process. This was the first top names cohort to include the new factor:
Screen capture via Portfolio Armor on 6/24/2022.
Here’s how those top names from 6/24 have performed so far, as of Monday’s close. On average, they’re up 8.12%, versus SPY, which was up 1.41%.
In last month’s email, I noted that we’re also tracking a “plain” version of our top ten without our additional factors, for comparison purposes. Here’s how that “plain” top ten did over the same time frame: up 7.05%.
So it looks like we’re getting some alpha from the factors. The numerical value of our factors going forward will be based on their outperformance (or underperformance) relative to our plain top ten.
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