23 October 2009
What are the Highs and why are they doing so well today?
You probably noticed that the market sold off today. We like to divide the world into high risk and low risk stocks. Not a unique idea but one that worked best for us in the past. We use the www.fordequity.com Value Momentum (VMO) indicator. A high VMO score corresponds to a low risk stock and v/v. Sometimes it can get confusing. Today the High VMO portfolio (50 names) outperformed the Low VMO portfolio (50) by 111 bps long-short. That's a lot. Investors are moving to safer ground. If you want to see a list of the names go here. http://www.tickerspy.com/portfolio.php?pid=84747 and here http://www.tickerspy.com/portfolio.php?pid=84746