May 16, 2023
Jeffrey Cohen, President US Advanced Computing Infrastructure, Inc.
We analyze between 3,500 and 4,000 stocks each day. We look at the price volatility over the past year and use it in our calculations.
We have seen those volatility numbers decline over the past weeks.
What this means is that our model is 'promoting' economically sensitive stocks, and smaller portfolios. Why? Because the expected returns of stocks is outweighing the cost of risk.
This week we lowered the expected return of stocks (forward looking for the next 12 months). Normally, this makes our model more conservative. It did not this week.
The model continues to 'crunch' the data on price variance for stocks, and it makes risky stocks more attractive.
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