Before i drive you to the real stock market spells, there are two methods to evaluating potential stock investments:
Quantitative investing: Finding potentially attractive investments by using statistical stock screens/rankings and buying/selling according to a set formula.
Qualitative investing: Finding potentially attractive investments by evaluating the underlying business and buying/selling according to business results and a valuation derived from financial models.
In this article, we are going to discuss the former. There are lots of formulaic stock buying-and-selling “systems” out there that have been extensively back tested and proven to beat the market over long periods of time. Some examples include Dogs of the Dow, or Joel Greenblatt’s Magic Formula Investing strategies. Magic Diligence offers its own set of ranked stock screens, as well. Called “Spells”, they are intended to provide the basis for a mechanical buy-and-sell strategy that should – if history is any guide – outperform the market over the long term.
The Rationale Behind Spells
Certain mechanical investing strategies – particularly value based ones – have been shown to outperform the market substantially over time.
James O’Shaughnessy, in his book What Works On Wall Street, tested dozens upon dozens of mechanical stock screens, back-testing each of them all the way back to the 1950’s. He found that doing simple stock screens on stocks with low valuations (against earnings, cash flow, book value, sales, etc.) dramatically outperformed the market over the long term. So did stocks with high efficiency metrics (return on equity or assets). Or stocks with strong relative strength. And so forth.
Joel Greenblatt’s simple, two variable, value-and-quality Magic Formula was shown to have *tripled* the market’s returns over a 17 year period from 1987 to 2004.
The key point is that disciplined, proven mechanical investing strategies beat the market. And that’s the point of the Spells.
Please contact Sheikh Suleiman for a spell that will give you a great performance at wall street or any other stocks point using the contact form below[contact-form-7 404 "Not Found"]