In the realm of investing, there’s an underappreciated asset that’s been quietly outperforming, yielding over 7%. This investment strategy, while not as flashy as some, has proven its worth time and again, and it’s time we shed some light on it.
The investment in question is the Zacks Rank stock-rating system. This system, built on a foundation of independent research and a dedication to sharing profitable discoveries with investors, has been a game-changer for those who’ve adopted it.
“Since 1988 it has more than doubled the S&P 500 with an average gain of +24.18% per year,” the source material states. These returns cover a period from January 1, 1988 through January 1, 2024, demonstrating the system’s long-term reliability and profitability.
The Zacks Rank system operates by computing returns monthly, based on the beginning and end of the month Zacks Rank stock prices, along with any dividends received during that particular month. The system then calculates a simple, equally-weighted average return of all Zacks Rank stocks to determine the monthly return.
These monthly returns are then compounded to arrive at the annual return. It’s a system that’s both straightforward and effective, and it’s been yielding impressive results for over three decades.
It’s important to note that only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. This means that the system is constantly adapting and evolving, taking into account the most current and relevant data.
However, as with any investment strategy, the Zacks Rank system is not without its caveats. The system can, and often does, change throughout the month. Additionally, certain Zacks Rank stocks for which no month-end price was available, or for which pricing information was not collected, or for certain other reasons, have been excluded from these return calculations.
Despite these considerations, the Zacks Rank system has proven itself to be a reliable and profitable investment strategy. For those looking for a steady, long-term investment strategy that has consistently outperformed the market, the Zacks Rank system is certainly worth considering.
In the world of investing, it’s often the underappreciated strategies that yield the most impressive results. The Zacks Rank system is a prime example of this, and it’s high time it received the recognition it deserves.
Let us know what you think, please share your thoughts in the comments below.
