I’m revealing five of the best stock investing strategies for high return and low risk, using a little-known investing formula to show you which beat the market. Check out Composer and how to automate your stock investing https://mystockmarketbasics.com/composer
We’ll be counting up to the highest performing investing strategy and show you exactly how to set each up but you can find all of these on the Composer platform, a new automated investing platform based on rules you set up to pick stocks to buy, like buy ten shares of Amazon every time it dips 10% or adjust the portfolio into the fastest growing stocks every two weeks.
In this video, I’ll show you why even buy-and-hold investors need an investing strategy and how to create one that beats the market. I’ll then reveal those five strategies to pick stocks you can use right now!
Even buy-and-hold investors need a stock market strategy, something to help guide your decisions on which stocks to buy and when you do that. Investing in stocks just because you heard about them on YouTube is NOT a strategy. You need a reason to believe a group of stocks will produce higher returns.
And for measuring how well your investing strategy is doing, there’s no better tool than the Sharpe Ratio. This simple formula adjusts returns on a stock or the stock market by how risky it is so you can compare investing strategies fairly. Finding the investment with the highest Sharpe Ratio means you’ve found the strategy with the highest return for the lowest risk.
Besides sharing those five stock market strategies, I’ll be comparing them to other popular investments. For comparison, over the last five years, gold has produced a 9.7% annual return on volatility of 13.4% so actually not bad, a little lower return than stocks but less risk for a Sharpe ratio of 0.59
The total stock market, using the Vanguard Total Stock Market ETF, ticker VTI, produced a 13.7% return on risk of 19.6% for just slightly better at a ratio of 0.60
The bond market did the worst, using the Vanguard Total Bond Market Index, ticker BND, we get an annual return of just 3% on volatility of 5.1% and a Sharpe ratio of 0.23…so low risk but the return was just so low here.
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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.
22 Comments
The 5 Best Investments I'm Watching for 2022…and the five you need to AVOID! 😯 https://youtu.be/CvQAGSonoDs
Ok please more videos like this!
Very nice. Signed up, but don’t see the 3 season on there? Also they don’t support my country, are you able to follow and do trades manually?
I think going forward it's going to be a big disappointment investing in bond etf's to offset stock market declines. I think bonds and stocks will move together. The 40 year bond bull market is in the rear view mirror.
Question about that hedgefundie excellent adventure. When I was looking at the TMF fund there's a waiver that needs to be signed. Says the Fund is not suitable for all investors. Says not intended to be used by, and not appropriate for investors who do not intend to actively monitor and manage their portfolios. Goes on about not intended to be used for periods longer than a single day. Idk. So much I still don't understand.
Can you please explain industrial stocks such as gogl and Zim
Your knowledge is 🥇 Gold. Now I have to put it to work 😏😸 Work!
Leverage! Just too fun ammiright?
Thanks Joe… I will be looking into your strategies this really makes a lot of sense invaluable information. I am not sure if you read these comments but I would like to get in touch wit you.
Another great video, thanks!
Hey, how about a video on how Invesco is ripping off investors in QQQ for marketing purposes. Money that SHOUD be going to the shareholders.
This is the reason why EVERY ad that you see for Invesco references the QQQ…..because ALL of the marketing dollars come from (or stolen from shareholders) of the QQQ's.
Whay hasn't someone ever exposed this!? HUGE RIP OFF!
I lost money with ARK F.. anyone else? I debating if I should sell or try to wait it out
"Hey bow tie nation", lol nice intro
I’ll take investments in stock any day they’re very remunerative only problem I’m having is I really don’t know how to go about it,I do get lost and overwhelmed by the markets. Any solid pointers in reaching this trader would be helpful,I’d appreciate if I got a reply
How much of my profile should I have in VTI I'm looking to hold 10 years right now I have 35% in VTI 20% in Vnq 20% in blue chip stocks rest in commodities small caps and utilities
Thank you, Joseph! I setup account with Composer with your link but do not see the Three Seasons symphony in Composer and your video is incomplete in how to set it up in Composer. Would you please advise on how to get Three Seasons symphony set up in Composer. I see other commenters have the same problem. Thank you!
I was once a fantasy sport player and I noticed mosts of the winning lineups had two top plays and undervalue unknown plays that most fantasy players missed. This strategy is called contrarian strategy. I applied it to picking stocks and it does work. Basically, view stock market conditions as fantasy tournament, investors makeup the tournament pool, stock prices are the entry fees, and the winning prize (next billionaire or millionaire).
Good information 👍
Hi, great video but I can't seem to find this last 3 seasons strategy on the website.
Seriously considering the big tech momentum strategy for a portion of my investing accounts. Brilliant stuff.
Really interesting! Yet. I see you don't respond to questions, so I'm likely wasting my time asking, but you don't explain how to determine the standard deviation. How? Also, I don't see how you set this up in Composer. Please explain the steps. Good insights and info, yet not practically useful without this information. Thanks, Ronald
I wouldn't refer to standard deviation as risk… Risk has to do with the probability that a particular return on investment will not occur. This is dictated by the fundamental characteristics of the asset itself, such as growth expectation in the case of company. The degree to which the market price of the asset vacillates is called volatility. For example, if you look at a company like Garmin, it has one of the lowest standard deviations, but I'd argue that it carries much higher risk than a company like Alphabet, based on competitive advantage, expected growth and valuation.
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