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Strategies & Market Trends : Value Line Investment Survey -- Ignore unavailable to you. Want to Upgrade?


To: EL KABONG!!! who wrote (178)1/22/2008 4:19:57 PM
From: OldAIMGuy  Respond to of 219
 
Hi EK, Good to see your smiling electrons here as well.

I believe that PowerShares licenses the Value Line info so they can put their name on the fund. There's PYH which is Timely Stocks in Timely Industries, PIV which is Timely Stocks with strong Safety and Technical ranks from VL as well. Finally there's FVL which is similar to PIV in using a combination of Timeliness, Safety and Technical ranks from VL.

PYH is down about 17% from its recent high water mark.



Here's the other two:




It's like getting a second chance to start with the fund!!

For me, I was able to do some selling into the rally along the way and then this last Fall I took some of the value and used it to start some other positions in my retirement account.

I think this one's going to be some fun. Your point is well taken on them possibly falling behind the curve with just quarterly adjustments to VL's current Timeliness ranks. I've always been a bit suspicious of Timeliness in the past. Generally I'm less Momentum and more Value oriented. However, I can't dispute VL's historical data, so decided to give it a try.

BTW, how do you like the market risk indicator based upon VL's "Appreciation Potential" weekly report?



Best regards, Tom



To: EL KABONG!!! who wrote (178)1/28/2008 10:49:09 AM
From: OldAIMGuy  Read Replies (1) | Respond to of 219
 
Hi EK, Re: Value Line Appreciation Potential............

This week the V/L AP value rose again to 75%. Using the method described, this equates to the level of cash needed to back up an individual stock investment to be only 25%, the lowest since we started this new indicator.


Note how the indexes seem to be bottoming in the last week while the V-Wave is showing lower risk. As we have more data, we can do some statistical analysis on the high and low risk areas. My best guess is that anything above 50% on the graph is going to be considered a high risk market and anything below 30% is going to be a relatively low risk environment for investors.

I added a note here in the graph that for ETFs and other diversified investments one can reduce the cash level by dividing the V-Wave number by 1.5. That would give us a cash level of just 17% this week for ETFs.

Best regards, Tom