5.27.2007

Ranting & Conclusion of Profitable Portfolios

The problem with the American economy, in my opinion, is that capital is too accessible. We focus on profits more than we do efficiency/innovation. All being the same, an organization (including the government) would be biased towards what produces the most profit in the least amount of time. As US citizens we have become accustom to this as normal behavior.


Baby-boomers

Classic music, classic cars, classic television shows, and classic style all were forced upon other generations by this group of individuals. The sheer size of this group is incredible. I believe that this is the sole reason that the 1980-90s were very profitable for the US stock market, and the real estate bubble thereafter. When this group was born (after the war) there was no other competitive nation. There was world exclusivity for US goods. This generation, I believe, got whatever they wanted -whenever they wanted for decades. During the 1960s - 70s there were not enough authority figures to suppress the movements of this group. During the 1980s (statistically the peak salary years) this group started investing their marginal income for their inevitable retirement. This created the 1990s in which the stock market was on almost complete speculation, stocks exploding well beyond any realistic technical or fundamental indicator. This group now is moving out of their houses, still spending like the 1980s (but on credit), and demanding that the US gov'ment bail them out of any fiscal responsibility. I believe that this crowd mentality is mostly responsible for destroying the stock market (pensions) and real estate market (purchasing beyond their means), killing younger generations (starting wars for profit), creating ghettos in America (too much credit creates poverty), encouraging irresponsibility to their children (encouraging college w/o a determined major), discouraging fair wages for other workers (pork spending to support this group), racism (Caucasian was the prominent race during 1960s - 90s), making health care too expensive, and creating unneccessary pollution. Mostly this group can claim ignorance to these consequences. Which would make it fair to say that this group of individuals are blatantly ignorant.

I believe that anyone in this generation had the biggest opportunity for wealth. And also believe that if one from this generation has not become wealthy from the serious advantage that they had (higher salary [compared to similar jobs today -adjusting for inflation], access to pensions & substantial retirement benefits [not afforded to new hired employees], job security, obvious investment opportunities [crowd mentality], access to capital, decreased environmental regulation, decreased foreign competition, &c...) they will never become wealthy and sustain their riches. I find that this generation was spoiled. It would also be fair to say that compared to current generations that this group is lazy, having never working as hard, as early in life as their progeny.

This is why I trade. I grew up with video games. I was bred to multi-task a magnitude of indicators (i.e. life, ammo, speed, direction, &c...), in which I easily translate towards the markets. I am determined to get what I want, but I must work very hard for it. It will not come easy, nor do I want it to come easy -for that would ruin me (read: Fable of the Bees).

And there is my tangent. I could easily go on further, but decided not to.


Now for my 3 month performance update on "Finding Profitable Portfolios":

Sector: Most Risky, Worst Time Frame Loss, Equal Win/Lose Buy & Hold
median return;
3 Month 5.35%
1.5 Month 4.6
Monthly -3.53
Bi-Weekly -5.28
Weekly -0.08
best time frame: 3 Month
worst time frame: Bi-Weekly

median time frame return: .21%
ratio best/worst time frame: 1.01 (equal chance)

Trendiness: 2nd Riskiest, Higher Return Individual Stock & Average Portfolio
Best & Worst pick Bi-Weekly & 3 Month, Worst pick Monthly, Best pick 1.5 Month
median return;
3 Month 5.44%
1.5 Month 5.15
Monthly -4.19
Bi-Weekly -1.02
Weekly 2.42
best time frame: 3 Month
worst time frame: Monthly

median time frame return: 1.56%
ratio best/worst time frame: 1.3 (1/3rd greater chance profit buy & hold)

Oscillating: Best Profit Ratio Buy & Hold, 2nd Best Median Time Frame
median return;
3 Month 3.73%
1.5 Month 4.27
Monthly -1.38
Bi-Weekly -1.7
Weekly 2.09
best time frame: 1.5 Month
worst time frame: Bi-Weekly

median time frame return: 1.4%
ratio best/worst time frame: 2.51 (1.5x greater chance profit buy & hold)

Volume: Best Time Frame Profit, 2nd Best Ratio Buy & Hold
Best pick Monthly, Worst pick 1.5 Month
median return;
3 Month 8.43%
1.5 Month 2.57
Monthly -3.31
Bi-Weekly -3.71
Weekly 1.28
best time frame: 3 Month
worst time frame: Bi-Weekly

median time frame return: 1.05%
ratio best/worst time frame: 2.27 (1 1/3x greater chance profit buy & hold)


Conclusion:
When scanning for profitable stocks seek Oscillating (profit ratio), Volume (average return),and then Trendiness (individual stock).

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2 Comments:

Blogger asciiadam said...

LFL 75.25 79.36 5.18
FCN 33.09 35.32 6.31
CEN 34.25 33.02 -3.59
NHP 34.26 29.51 -13.86
PKY 56.53 49.77 -11.96
TCO 62.63 51.84 -17.22
SPAR 22.97 34.70 33.8
CTB 16.56 24.15 31.43
CG 72.93 77.85 6.32
AGU 38.77 38.36 -1.06
MOS 25.23 32.97 23.47

SABA 7.62 6.2 -18.63
TRIB 9.88 11.1 11
ICGE 11.77 11.51 2.2
EXFO 7.28 6.54 -10.16
NXST 7.50 14.62 48.7
CRAY 13.61 7.93 -41.73
IBAS 9.96 10.15 1.87
ISPH 7.83 6.13 21.71
CHR 7.58 9.04 16.15
MPP 10.70 12.77 16.21
MPWR 13.71 16.78 18.29
RAMR 16.03 16.13 .62
SPIR 9.32 9.76 4.5

QCOM 42.51 43.45 2.16
SIAL 41.62 43.47 4.25
ORLY 34.66 36.62 5.35
SGMS 34.14 36.33 6.02
LNDC 13.40 13.56 1.18
ACLS 7.64 6.2 -18.84
HON 47.83 56.93 16
LDG 46.52 57.27 18.77
CPF 39.96 33.52 -16.11
NWL 31.51 31.42 -.28
LUK 28.50 34.7 17.86
HBI 26.78 25.7 -4.03
CHR 7.58 9.04 16.15

BOBE 36.64 37.72 2.86
TLEO 15.13 19.65 23
DMRC 12.20 9.38 -23.11
SHG 122.01 120.52 -1.22
BAM 54.40 63.67 14.56
TIN 53.16 62.1 14.49
GR 50.85 58.78 13.49
ADP 50.96 49.23 -3.39
AET 45.61 52.42 13
NWL 31.51 31.42 -.28
TRW 29.26 41.65 29.75
JNS 22.30 27.28 18.25
BKC 22.61 24.65 8.27

1:25 PM  
Blogger Kristi said...

Your "tangent" was very interesting. I think a leading cause to the "laziness" of that generation is the entitlement that they feel. Specifically due to the fact that their elders worked so hard to get anything in their life (which involved a lot of self sacrifice), maybe they felt they needed to rebel and live a much "larger" life. (In terms of status symbols) It's easy to feel resentment, considering their mis-use of the many opportunities they had in their lifetime. The sad thing is that most of "our" generation was spoiled by the baby boomers, therefore given everything on a silver platter and now we have an enormous amount of people who don't understand what it is to have a dream driving you to work harder than you have ever worked in your life.

6:06 PM  

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