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Strategies & Market Trends : 99 RS stocks--WATCH THEM FLY HIGHER AND HIGHER -- Ignore unavailable to you. Want to Upgrade?

To: freelyhovering who wrote (34)	10/26/1997 5:36:00 PM
From: Ocote	Read Replies (2) \| Respond to of 836

Nice thread Myron. If you have AOL, wander over to Robert Sheard's Foolish Workshop where he has a number of models running that he has backtested for a number of years. He doesn't have a 99 portfolio, but he alludes to the possibility that it has not done well over a long period of time: >>Using a pure Relative Strength screen hasn't worked as well as the EPS screen (Unemotional growth) for shorter holding periods like the monthly cycle we follow with UG. I tested such a screen when I was developing UG and found it consistently under-performed the EPS screen. But over longer periods, the Relative Strength screen is a very powerful one, as Jim O'Shaughnessy and others have pointed out. For instance, if one started with the Value Line list of 100 stocks and simply set a minimum score for both EPS and RS of 90, and then took stocks from that list with the highest RS ranking and held a full year, over the last decade, such a simple model generated compounded gains of 35% a year for either a five- or ten-stock portfolio.<< I'm not sure if he tested RS99 stocks only, but there may be some research of interest to you in his work. Ocote