Sunday, September 20, 2015

The Sarcasm Report v.245

September 18, 2015
Zacks: The Single Biggest Obstacle to Trading Success

We’ve created such an approach with our new strategy that incorporates Zacks Rank #1s, the top Zacks Ranked Industries, and a special combination of various Growth, Value, and Momentum style inputs that have shown extreme profit potential.

We call this secret formulation the Zacks Black Box Trader.

Best of all, there is no human bias to this computer driven and operated strategy. Just a straightforward, quantitative model that has tested off-the-charts,
beating the S&P in 10 out of the last 10 years, more than quadrupling its returns with an average annual gain of 31.8% vs. the S&P's 7.5% over that same time frame. And with less risk while doing so.

It's a new strategy that presumably uses 10 or more years of historical data to accurately predict 10 or more years of historical data.

Color me impressed.


Stagflationary Mark said...

In related news, much to my dismay as a Seahwaks fan, I have a new strategy that accurately predicts Super Bowl winners using historical data.


I've backtested it one year and it works every single time, lol. Sigh,

Troy said...

Through the magic of photoshop I can see the future; that is the population of age 20-29 out to 2020.

This is an important part of the reason why the 1970s and early 80s was so inflationary, a lot of new households getting started.

Similar crush building this decade too, with the echo boomers.

Japan, red line, not so much! What a strange predicament to be in, after centuries of too many people, now they have too few!

Troy said...

(I shifted the x axis 5 years to the left to convert the graph to age 20-29 from 15-24)

Stagflationary Mark said...


1. The population growth effect is much, much smaller this time around (as is seen if you put your chart on s log scale).

2. It will be interesting to see what the Great Recession's baby bust will do in the future. That won't be inflationary.

3. As is the case with my mother and a recent neighbor, white picket fence housing will be freed up as the older among us are eventually forced to downsize. There are plenty.

4. The chart also really needs robots and outsourcng. Can't get as much inflation if households can't earn the wages needed to afford expensive housing.

5. We're a service economy now. Much of it is discretionary. In theory, "wants" should never have the pricing power of "needs".

Just my five cents (adjusted for inflation).