Reduces Risks, Reduces Losses
and Improves Profits on S&P Stocks
S&P stocks with ERS’s best ratings greatly outperformed the stocks with the worst ratings.
|Average 5-Year Performance Results in All 62 Investment Periods||84.3%||37.0%||78.3%||35.4%|
|5Y Periods Which Produced a Gain||58||46||58||45|
|as Percentage of All 62 Investment Periods||93.5%||74.2%||93.5%||72.6%|
|Average Gain in Positive Periods||90.8%||53.7%||84.0%||51.4%|
|Growth of $1,000,000 Investment,
12/31/98 – 12/31/18
Methodology: Every quarter, we rated every stock in the S&P 500 (totaling 881 unique stocks) from 12/31/98 to 3/31/14 (62 periods).
We segmented those stocks into 4 risk groups.
One group had stocks in the lowest 5%; The second had stocks in the highest 5%;
The third had stocks in the lowest 10%; The last had stocks in the highest 10%.
We tracked the following price performance of each group for the following 5 years.
Then we determined the annual rate of return for each of the 4 groups, and calculated what an initial investment of $1 million would grow to if invested at that rate for 20 years.
Equity Risk Sciences:
Setting the Standard for Reliable Risk Research