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Strategies & Market Trends : Value Line Investment Survey
VALU 36.66+0.1%Oct 31 9:30 AM EDT

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To: EL KABONG!!! who wrote (192)10/30/2008 6:15:21 PM
From: OldAIMGuy  Read Replies (1) of 219
 
Hi El, Re: ValuWave..............

I guess I have always looked at the "Appreciation Potential" number and wondered if the market will achieve the results they describe. Over time, however, I noticed that the number did correlate (inversely) to the overall market. That's when it occurred to me to subtract the value from 100 to gauge market risk.

As the graph shows, there's pretty good correlation between the v-Wave and market risk (so far). I've looked back through years of ancient, yellowing paper from Value Line and found it's usually been pretty good around the big turning points in the market. So, I thought it would be of "value" to plot it over time and see what it looks like.

I've also meant to get myself to a major public library and sort through ancient V/L issues to compile a longer database. It should be of interest to any fans of Value Line.

While I'm not a fan of Margin, it does appear that we're currently in what appears to be a pretty good market for investing new money long term.

I'm using PYH (Timely stocks in timely industries) as one of my main holdings. It's been a rocky road recently, but other than cash, so would almost any "long" mutual fund. It's been a GAARL for me!!!

Best regards, Tom
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