The S&P 500 Equity Index ETF scores almost as well as the best risk adjusted portfolio we found.
Here is our best solution for US listed stocks that pass our data validation. This long portfolio was chosen from 3,394 common stocks.
-0.000074 ['AAPL', 'ADP', 'AFCG', 'AFG', 'AGNC', 'AMBP', 'AMZN', 'ANSS', 'ARI', 'AVGO', 'BITO', 'BKE', 'CFFN', 'COST', 'CSCO', 'CVI', 'F', 'FAST', 'FTAI', 'GOOG', 'HPQ', 'INTC', 'INTU', 'LLY', 'MC', 'MFA', 'MSFT', 'NFE', 'OMF', 'OTEX', 'PFE', 'PKE', 'PSA', 'RILY', 'ROK', 'RTL', 'SBUX', 'STT', 'TROW'] 39
It has a Chicago Quantum Net Score (CQNS) of 74 'ticks' better than holding all 3,394 stocks equally.
The SPY, or S&P 500 Equity Index ETF has a score of -0.000061, or 61 ticks better than holding all 3,394 stocks equally.
Today, active investors looking to maximize their risk-adjusted expected returns should stay fully diversified into the S&P 500 ETF.
So, what are we doing? We are long two very risky stocks that we think are dramatically undervalued by the market.
They are important companies to their customers, they earn significant revenues every day (brick and mortar firms with physical locations), and are working to make incremental improvements to their operations to increase earnings enough to reduce their debt leverage ratios and return to profitability (not just positive EBITDA).
They are bankruptcy risk stocks that should do very well if the USA avoids a recession and the economy grows instead.
These are also stocks that are actively looking to manage their outstanding debt and are working with their lenders accordingly.
We are confident that these two investments will pay off, and we have a third company on our shopping list.
Stock Market BLOG
President and Investment Advisor Representative