Is Zacks Really Any Good? - Voice of the People

Zacks' Voice of the People Highlights user badger729:

from the People & Picks community.

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I dabble in stock picking here and there, as part of an overall balanced and hedged investment portfolio, and I decided to track the zacks rank, buying into a stock when its listed as a #1, and selling as soon as it is off the #1 rank. I subtracted out my trading costs, which are 4$ a trade, and looked at the pretax return of my portfolio on a daily basis. This is a very small subset of the data, but these are the results, using a $2000 investment for each position. These are some of the positions I closed from 10/28-11/4.

(

) .62%/day

(

) .19%/day

(

) -.11%/day

(

) .47%/day

(

) .098%/day

Keep in mind this was just moving in and out of positions as Zacks made the recomendations, and bigger gains may have been captured had I used some of my own intution, but when all the math is said and done the portfolio return is 1.795%/day. Over 260 trading days this would work out to a simple return of 466.7% over a year. I guess these guys know what they are doing.

Keep in mind, also this is not the only tactic needed for a good investment portfolio, and that these gains were all during a great bull market over the past couple months, and I was not going short any positions.

I just thought some people might find this interesting, happy trading :)

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