Being a subscriber of both UK + US it seems that the returns harvested by stock ranks in the UK has or can not be replicated in the US as returns seems to track the market. Can anyone shed any light as to why this might be the case?
Chartered Accountant
OK there are several layers to this question. Firstly "are the StockRanks working in the USA?"
We've been working on the historical performance data so that we can add it into the StockRanks performance tracker. This work has yet to be finished, but it should be within a couple of months. But from my own analyses I can show the decile returns of NYSE & Nasdaq stocks held for 1 year from 31st July. These charts were created just before the recent falls - so they are a couple of weeks old. I would normally have updated this chart till today's prices for this post, but I'm on a rare holiday and my wife and kids are the priority this morning !
The chart above shows the general trend towards higher ranking stocks outperforming. For comparison the S&P 500 was showing a 7.4% return over that time period. You can see that the top 25 ranked Nasdaq & NYSE stocks (the column on the right) returned 18% over the timeframe - which is a terrific return in the period.
Over the same timeframe the top decile of UK StockRank stocks returned about 22%. Why have the UK StockRanks done 'better' - in a period when the UK market underperformed the US market?
I think there are several explanations.
So that's my summary... there will be a lot more to discuss on these points in due course... the autumn work on the international performance data may bring more revelations to light.
