Welcome.
This thread is for the discussion of the Value Line Investment Survey and its various screens, indicators and estimates. Discussion on investments based on Value Line's screens, recommendations, etc. are also welcome. Direct investment in Value Line's recommendations has been difficult in the past, but several new Exchange Traded Funds have come to market in recent years to offer the investor nearly direct access. PIV, PYH and FVL are examples.
(Discussion of PYH here: Subject 57381 )
The information is valuable the way it's presented by them but is also useful when combined with data from other sources. One which we've been monitoring is Value Line's "Appreciation Potential." We've taken the value and modified it slightly and compared it to the market's various indexes. The result is what we're calling the ValuWave:
(Low Risk < 30% ; High Risk > 50%)
(100 - VL App. Potential = ValuWave)
Good correlation can be seen between the movement of the indexes and the ValuWave Cash Indicator. We use this to get a feel for what our overall Equity/Cash ratio should be compared to how Value Line's Appreciation Potential perceives overall market risk. High cash suggestions should correspond to high risk markets. In spot checks going back to 1987 we find it has been very good at calling market conditions. It will even suggest "negative cash" in very low risk markets for those interested in using Margin.
Please feel free to make other suggestions for indicators based upon Value Line's various regular features.
Best regards,
Tom Veale |
