We coded hard and ran the models last night: Findings...

There are 10 good dividend stocks to buy (we are waiting until the market drops further, but these are solid stocks today).
Four of them are highly efficient stocks (BX CG APAM QCOM)
Six are down ~40% last year while still paying out dividends > $SPY. (FL RCII AEO FLXS GPS QRTEA)

Those dividend stocks became quite popular yesterday, and rose dramatically while the $SPY rose.  However, just following the simple criteria does not work (price drop and paid a high dividend).  Some of those may be 'going out of business' stories as opposed to value stock buys.  It requires due diligence into each stock you may buy or sell.

All of these stocks have an Achilles heel and a story. Most will suffer in a market decline, a recession, and a continuation of 5.4% per month inflation in energy, warehousing and transportation services.

We see a very low expected market return (under 6%), which means that reducing volatility and price variance is key to surviving and thriving in this market. Of course, this is much harder to do computationally, so we are tuning our models and running them deeper.

The best portfolio to buy today...is equally a 4, 5, 6, 7, 8, 9 and 10 stock portfolio.  It depends on whether you like a larger or smaller set of holdings.  The CQNS scores are all the same (within our rounding error range).

-0.0012 ['AOSL', 'SI', 'SITM', 'TTD'] 4


-0.0012 ['AOSL', 'SI', 'SITM', 'SQ', 'TTD'] 5


-0.0012 ['AOSL', 'SI', 'SITM', 'SQ', 'TTD', 'UPST'] 6


-0.0012 ['AOSL', 'DDS', 'SI', 'SITM', 'SQ', 'TTD', 'UPST'] 7


-0.0012 ['AOSL', 'CLFD', 'DDS', 'SI', 'SITM', 'SQ', 'TTD', 'UPST'] 8


-0.0012 ['AOSL', 'DDS', 'LSPD', 'SI', 'SITM', 'SQ', 'TTD', 'UPST'] 8


-0.0012 ['AOSL', 'CLFD', 'DDS', 'LSPD', 'SI', 'SITM', 'SQ', 'TTD', 'UPST'] 9


-0.0012 ['AOSL', 'CLFD', 'DDS', 'LSCC', 'LSPD', 'SI', 'SITM', 'SQ', 'TTD', 'UPST'] 10

Finally, as the market expected return falls, the advantage that individual stocks have over the $SPY or $QQQ or $IWM falls.  For most investors that do not follow the markets and want a safe and low risk way forward, just buy the indices.  Our models are for those who want to work through the risk and return math and find those alpha / edges in the market.

In conclusion, why trade with us?

Why trade with us?  We do the homework.  We run the models.  We analyze the markets to help you make better trading decisions.  We find the insights, and we do deep proprietary due diligence on companies before you invest.

Jeffrey Cohen
Investment Advisor Representative
​+1.312.515.7333 (cell)