Avoiding “risky” stocks is vital to capital preservation and improving long-term results.
Today, July 3, 2019, ERS ran a ratings test of all companies with a market cap over $5 billion 5 years ago.
The stocks ERS rated “highest-risk” grossly underperformed average stocks.
And, stocks ERS rated as “lowest-risk” significantly outperformed average stocks.
ERS’s risk ratings provide safety of capital* and consistently improve results. The higher the risk ratings, the worse the performance.
*In the 2-year period from July 3, 2014 through July 3, 2016, 22 of the 622 companies in the sample declined over -50%; ERS rated 17 (77%) of the 22 companies as either high Price Risk or Financial Risk.
ERS identifies and protects investors from companies at risk of suffering great declines.