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The Facts – Independent and Profitable The Quantitative Stock Research rating system is the only research system on the Internet that we know of today with a published continuous fifteen-year track-record. Rabbitt Analytics’ performance has been continuously published every month since June 1992. Rabbitt Analytics analyzes approximately the largest 2,000 stocks in the US every day. Fifteen Years In fifteen years the Rabbitt Analytics Q-Stock Research System annual published returns are as follows: Strong Buys (Q-rated 90-99) 23.4 percent, Out-Performers (Q-rated 70-79) 14.7 percent, Underperformers (Q-rated 20-29) 6.8 percent, and Strong Sells (Q-rated 0-9) 2.7 percent. The S&P 500 returned 8.8 percent per year during this period (monthly rebalancing, commissions and slippage excluded). One Year Rabbitt Analytics Q-Stock Research has delivered strong performance in the past twelve months. The average strong buy returned 11.9 percent while the S&P500 returned 9.7 percent. (see table below – read the row called “One Year Trailing-Annualized”). Three Years The Q-Stock Research Rating System has done a superb job of identifying winners during the market of the past three years. During the recent three years the Q-Stock Research Rating Strong Buys returned 19 percent, the S&P500 returned 7.3 percent annually (see table below – read the row called “Three Year Trailing-Annualized”). Five Years In the last five-years the average strong buy returned 20.1 percent while the S&P500 returned 5 percent per year (see table below – read the row called “Five Year Trailing-Annualized”). The following charts show the cumulative performance of the Q-Stock Rank system. .
What Can We Learn The Rabbitt Analytics "Strong Buy" Group's performance (90-99 Q-Rank) has far exceeded the other groups' performances (see the bar on the far-right side of the graph above). The performance "edge" of the Q-Rank system is best for the top group (Q-Stock Research Rating rated 90-99) and does equally well identifying the stocks that will do "worst" in the future. Stocks rated 0-9 are the stocks that should either be avoided or possibly shorted. Therefore, extreme ranks make it easier to draw conclusions. For our complimentary report on selling short email us at info@rabbittanalytics.com and request our article on short selling. The following chart gives the annual performance of the Strong Buys (Q-Stock Research Rating 90-99), the S&P 500, and the Strong Sells (Q-Stock Research Rating 0-9) in each calendar year for the past decade (since 1992):
The Rabbitt Analytics record is based on
the average performance of a portfolio basket of the
stocks grouped according to its Quantitative Stock Research
rating and divided into ten Q-Research rating deciles.
Since July 1992, a hypothetical $1 dollar invested in the top decile (Q-Stock Research Rating 90-99) became $208.82 (see above). The same $1 dollar invested in S&P 500 became $24.65 and a $1 dollar invested in the Q-Stock Research strong sells became $4.84. How the Performance is Calculated The entire 2000 stock universe is divided into ten groups (deciles) based on their Q-Stock Research rating. The performance of each Q-Research group is the average performance of all stocks in the group regardless of market capitalization. Dividends are not included in performance. The performance of each Q-Research group could have been achieved only if equal-dollar investments were made in all stocks in that group on the day the stocks were rated, held for one month, then sold off and that amount reinvested in the subsequent month's stock recommendations for that group. The monthly rebalancing assumed in the performance calculation is used to calculate the performance of a large body of stocks and may be impractical in real life, given transaction costs. |
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