ProfitScore Update – December 2022
To the clients and friends of ProfitScore: Contrary to what most bulls want to hear, the bottom for this current bear market cycle may not be in yet. Historically, a bear market has never ended before a recession has begun. Here is a snapshot of…
ProfitScore Update – October 2022
Inflation Adjusted Equity/Bonds To the clients and friends of ProfitScore: With all the talk of inflation, there is one element that you don’t see much. The S&P is down -17.75% through October, but adjusting for inflation puts the S&P down -23.05%. For reference, the S&P…
ProfitScore Update – August 2022
To the clients and friends of ProfitScore: As has been previously mentioned ProfitScore has two trading constructs for both our treasury program and our equity program. Specifically for our Equity program, we use two systems, one is for low volatility and one is for high…
ProfitScore Update – July 2022
To the clients and friends of ProfitScore: One of the core tenants of ProfitScore trading discipline is the concept of “market states.” ProfitScore believes that knowing what market state you are in dramatically increases your chance of success. ProfitScore specializes in trading equities and US…
ProfitScore Update – June 2022
To the clients and friends of ProfitScore: ProfitScore is primarily a research and development firm, we try and outsource as many business processes as possible that detract from our core. One of our most important fundamentals at ProfitScore is “hypothesis-driven” research where ideas are first…
ProfitScore Update – April 2022
To the clients and friends of ProfitScore: Institutional investors know ProfitScore primarily for our US Treasury work, but few investors know about our expertise in trading US equities. ProfitScore has provided equity research and sub-advised equity programs to the RIA channel for over two decades. In…
ProfitScore Update – January 2022
To the clients and friends of ProfitScore: The expectation of heightened volatility for 2022 did not disappoint in January. The VIX rose to just short of 32 in late January, its highest level since January 2021, settling at 24.38 by month’s end. According to weekly data published…
ProfitScore Update – December 2021
To the clients and friends of ProfitScore: One of the time-tested valuation measures is the CAPE (Cyclically Adjusted PE ratio) developed by Prof Robert Shiller at Yale. Below is a chart using Shiller’s data. On the x-axis is the CAPE ratio at any given point…
ProfitScore Update – November 2021
To the clients and friends of ProfitScore: Our flight-to-quality indicator had been building towards the end of November and went long on the Wednesday before Thanksgiving. This trade can last for a few days or several weeks. It can also chop around depending on the…