I have long talked about investors suffering because they invest in what they hope will happen–or think will happen. All the evidence is that economists have very little idea what is next for the economy. The market often is disconnected to the economy, especially the one in the rear view mirror the media likes to focus on. These truisms make predicting the stock market a folly. Instead of “playing the market”, how about simply investing the companies people trust the most?
Please do not think I have lost my passion for the stock market! After 25-plus years using my Magnet® model that has allowed me to find market winners–I am more engaged with the market than ever. I am just finally past the point of trying to out-think my model. What I have done instead is to enhance Magnet by bringing in “extra-financials” to create FACTS®, a model that tries to identify “The Most Trustworthy Companies in America”.
Years ago I was intrigued when Magnet identified companies before the market discovered them. The reality was by the time some of these companies started to move, I had already impatiently sold. The FACTS model brings in “extra-financials”. This data comes from outside data providers and is only available for the largest 2500 companies. As a result, these companies already have some institutional support and are more liquid. The best of these are already on the move.
An example of one of our current holdings is Pilgrims Corp. (PPC) . While I have out guessed myself in the past, when I saw PPC score come up to near the top of our FACTS watch list, I used this latest pullback to buy shares. While not nearly the most exciting company I have ever invested in, I invest for profits–not excitement. The stock currently ranks up highly on both Magnet and FACTS. It is a no-brainer for me. Put away your prejudice…you might even be a vegetarian. I have learned to accept and embrace what my model brings to me. Stay hungry my friends–for profits!
This article has been prepared solely for informational purposes, and is not an offer to buy, nor sell or a solicitation of an offer to buy or sell any security, product, service or investment. The opinions expressed herein do not constitute investment advice and independent advice should be sought where appropriate. All information and opinions expressed herein are current as of publication and are subject to change without notice.
Jordan Kimmel may be trading in these stocks in Magnet AE.