Awesome work, and thanks for the analysis! Graham brought me here :D
Have you considered doing something similar for any of the other benchmark indexes, or even comparing them against each other? I'd also be very curious to see how international funds would pan out in an analysis like this.
Does investing in SPY "Average Joe" style essentially mimic the approach of your more recent crypto DCA analysis?
Reading that article and this one made me wonder if taking the top 5, 10 or 15 trading stocks (no funds) by trading volume might yield similar or better returns than the Avg Joe approach. My thinking was since SPY is the top 500 companies, maybe it's broader exposure would also limit it's upside.
The finviz screener I came up with was the following:
Market Cap: >=$2bln // Can assume a relatively stable company
Avg Daily Vol: >=2m // High enough volume to likely be at the top of 30d Volume
Div Yield: >=0% // Personal preference for DRIP
SMA20: Price above // Indication that the stock is performing well
This reflects what I would personally look into if I were to implement this strategy, and I don't see a 30d/Month Volume filter which is why I'm using the SMA20 and Avg Daily. Sorting the results by Avg Daily, here are the top 5 I get as of 10/19/2021:
A UNebraska study on a working enhanced DCA strategy. The idea is to invest higher fixed amounts after a down market month and lower fixed amounts after an up month. The improvement over the S&P500 is only 0.17-0.70% annually, but it's consistent.
Very interesting and thanks for the data as well. Have you tried a value averaging strategy and perhaps comparing that to a value averaging strategy that incorporates TA such Bollinger bands or P/E ratios etc? Thanks
Bravo!!!
Awesome work, and thanks for the analysis! Graham brought me here :D
Have you considered doing something similar for any of the other benchmark indexes, or even comparing them against each other? I'd also be very curious to see how international funds would pan out in an analysis like this.
Thanks for writing these posts. They keep on reinforcing the basics.
Does investing in SPY "Average Joe" style essentially mimic the approach of your more recent crypto DCA analysis?
Reading that article and this one made me wonder if taking the top 5, 10 or 15 trading stocks (no funds) by trading volume might yield similar or better returns than the Avg Joe approach. My thinking was since SPY is the top 500 companies, maybe it's broader exposure would also limit it's upside.
The finviz screener I came up with was the following:
Market Cap: >=$2bln // Can assume a relatively stable company
Avg Daily Vol: >=2m // High enough volume to likely be at the top of 30d Volume
Div Yield: >=0% // Personal preference for DRIP
SMA20: Price above // Indication that the stock is performing well
This reflects what I would personally look into if I were to implement this strategy, and I don't see a 30d/Month Volume filter which is why I'm using the SMA20 and Avg Daily. Sorting the results by Avg Daily, here are the top 5 I get as of 10/19/2021:
AAPL - Apple
BAC - Bank of America
WFC - Wells Fargo
NVDA - Nvidia Corp
MSFT - Microsoft
It would be interesting to know if a particular day of the month is better and also twice a month or weekly v/s once a month
A UNebraska study on a working enhanced DCA strategy. The idea is to invest higher fixed amounts after a down market month and lower fixed amounts after an up month. The improvement over the S&P500 is only 0.17-0.70% annually, but it's consistent.
https://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=1025&context=financefacpub
Very interesting and thanks for the data as well. Have you tried a value averaging strategy and perhaps comparing that to a value averaging strategy that incorporates TA such Bollinger bands or P/E ratios etc? Thanks