Interesting article from Value Line on the results of investing using the Value Line rankings for the first half of 2006...
valueline.com
...The Value Line Asset Allocation Model provided no indication of a sharp market correction in May-June. It currently stands at 80% invested in common stocks, somewhat lower than in recent months, but not indicative of any market vulnerability in the next six months. Indeed, since 1968, no major market drop has occurred with the model at as high a level as it is currently. Our Dow Jones projection for the year ending June, 2007 is for an average price of about 11,500, based upon the earnings, dividends and interest rates we forecast at this time. All in all, the market appears to be at least fairly valued, if not slightly undervalued. Typically the Timeliness Ranking System does better in the second half of the year than in the first, due to the January Effect which tends to adversely affect early-month results, although that was not true this year. We look forward to second-half results, with the expectation that the Groups 1 and 2 will continue their winning ways. (**bolding mine**)
EK!!! |
