How accurate have Quantext Portfolio Projections been over the last bear and bull markets. Back on 12/31/2007, QPP projected an annualized return of 7.4% with a standard deviation of 10.5% for a portfolio made up of SPY, IWM, EFA, EEM, TIP, TLT, AGG, and IEF. The exact percentages are listed in the screenshot below. That low risk percentage looked great in December 2007, but we did not foresee the market cratering during the following 15 months. If one examines a portfolio made up of the above ETFs in the percentages laid out below and assumes the S&P 500 will grow at an annualized rate of 7.0%, we have the data to see how close the projections came to their actual target.
Investors looking to build a portfolio from stocks that show continual growth in dividends will find the following list of interest. From this long list I add a few more screens and the three stocks that pass these additional screens are identified below.
Readers are reminded that well over 95% of the investments in ITA Wealth Management portfolios are invested in non-managed index ETFs. However, from time to time we will add individual stocks to provide additional diversity. It may sound strange to think individual stocks can provide diversity and lower overall correlations, but that is the case if the stocks are carefully selected. I just find it extremely difficult to construct an entire portfolio from stocks as I don’t have a global view and it is particularly lacking when it comes to selecting stocks in emerging markets. Most investors are better off building portfolios from index funds rather than individual stocks. Caution: Stay away from managed mutual funds if at all possible as they are bad news.
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