Update on further enhancements etc.
A note for subscribers about a further enhancement to the recently added expanded All Scores Section, although it may also be of interest to others & potential subscribers too.
In addition to the Haugen QVM, SHY and Conservative formula Scores across some 1600 UK stocks, we have added some new absolute & relative price momentum indicators. These are available for all these stocks in addition to the Triple Trend Momentum indicators on the 500 or so original Compound Income Scores stocks. They are designed as a quick way to identify stocks with the strongest and weakest trends based on the absolute total returns over 12 months and their relative performance over the last 12 months too less the latest month to make allowance for short term mean reversion.
Those with positive trends on both of these measures (those with the strongest momentum trend) will be flagged as Buy, while those positive in just one of those are suggested as Hold. Finally those with negative trends on both of these (the weakest momentum stocks) are suggested as Sells. Now these should probably not be followed blindly, but I hope that subscribers will find them useful in quickly identifying if a stock that Scores well and they are researching is in a strong upward or downward trend and being aware of that before taking further action.
The thinking behind this is based on the Dual Momentum research popularized by Gary Antonacci in his various research papers which all suggests that this can help to deliver higher returns at lower risk. He did mostly suggested applying this to sectors or as an overlay to index asset allocation as a way of reducing turnover and downside in more negative market periods. Nevertheless I think it could be helpful at the stock level too which is why I have added it to the All Scores as a quick guide to the strongest and weakest stocks in terms of momentum, particularly as we are currently going through one of those periodic more difficult times in the market. If subscribers do have any questions or feedback then do please get in touch. Or if you’d like to become a subscriber then please see here for details of how to sign up for access to the Scores and these momentum indicators plus the associated portfolio.
Further note for subscribers.
Footnote on next scheduled update & Monthly Screening. Having avoided extra turnover last month and as I will be holidaying abroad for the first time in a few years around the end of the month, I will probably bring forward this months screening to next week & I will endeavour to keep the Scores updated assuming the hotel wi-fi is up to the job. Not sure if I will have the time or inclination to do a detailed performance update this month though, but lets see, adios Amigos for now.
