The Efficacy of ERS’s Ratings on S&P 500 Stocks

The Efficacy of ERS’s Ratings on S&P 500 Stocks2019-07-10T14:53:05+00:00

ERS’s Technology
Reduces Risks, Reduces Losses
and Improves Profits on S&P Stocks

The results:

S&P stocks with ERS’s best ratings greatly outperformed the stocks with the worst ratings.

  Safest
5%
Riskiest
5%
  Safest
10%
Riskiest
10%
 
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
  $11.5 M
$3.5 M
  $10.1 M
$3.3 M
 

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