1+1 = 3 Sometimes

Adam has found six factors that work in the long run. Published By Money & Markets, LLC. April 03, 2024 Published By Money & Markets, LLC. April 03, 2024 [Turn Your Images On] [Turn Your Images On] From The Desk of [Michael Carr]( Editor, [Money & Markets Daily]( Adam Understands 1+1 = 3 Sometimes Money & Markets Daily, Laurel and Hardy …  Abbott and Costello … Aykroyd and Belushi. You know these names. And you’ve probably seen all three comedy teams in action. Maybe you’ve even seen solo performances. Stan Laurel without Oliver Hardy just isn’t as funny. Neither is Bud Abbott without Lou Costello. While John Belushi is funny no matter what, Dan Aykroyd benefits from their partnership. These are examples of times when 1 + 1 = 3. Laurel, by himself, for example, is funny. The same applies to Hardy. But it’s when they work together that they create classic comedy. Researchers have found that this principle applies to finance as well. Factor investors target specific attributes of stocks that have historically outperformed the market. Factors like value and momentum are especially popular. Of course, there are more factors than those two. Harvey, Liu and Zhu's (2016) paper titled [...and the Cross-Section of Expected Returns]( identified 316 different factors. The authors noted this “likely under-represents the factor population.” While there could be more than 316 factors, far less than that total stand up to scrutiny. Applying the standard used by medical researchers, the paper found that 158 (50%) are false discoveries. Less than a third of the remaining 158 deliver meaningful improvements in results. This means that investors need to drill down into the research to understand what really works. Adam O’Dell has done that. He’s identified six factors that actually work in the long run. Then, he went one step further… --------------------------------------------------------------- [Turn Your Images On]( [$25 Stock to Fuel the AI Market Boom of 2024]( One secretive company’s new technology is poised to disrupt the AI market – a market that is projected to grow from roughly $500 billion to $200 trillion. That’s a surge of 39,900% over the next six years. Today, you can invest in this one-of-a-kind company for just $25 a share. [Click here for all the details.]( --------------------------------------------------------------- The Synergistic Power of Combined Factors Adam understands that no one factor is likely to beat the market all the time. Like other researchers, he combines factors to outperform. That’s the idea behind his proprietary Green Zone Power Ratings system. As a simple example, consider value and momentum investing. Value stocks are cheap based on their fundamentals. Momentum stocks show strong recent price performance. By combining these two factors, investors can capture the potential upside of undervalued stocks. That’s the Value factor in Green Zone Power Ratings. They also benefit from the wave of positive market sentiment about the stock (the Momentum factor). As an example, check out how Target Corp. (NYSE: TGT) rates: [Turn Your Images On] TGT scores well on Momentum (61) and Value (71), and overall, it has a 69 out of 100 rating. Investors have pushed shares of this high-value stock up almost 65% over the last six months. His Green Zone Power Ratings blend six factors to identify some of the most promising and lucrative trades in the market. And you can try it for free at any time on our site. Just use the search function on [www.MoneyandMarkets.com]( to look up a stock ticker now. In some ways, it’s like having Laurel, Hardy, Abbott, Costello, Aykroyd and Belushi all in the same room! Recently, Adam has been focusing on tech stocks as the AI mega trend solidifies — and with the help of his ratings system, he’s discovered a revolutionary company that deserves every investor’s attention [right now](. Its overall ratings aren't top of the charts, but its scores on individual factors like Quality, Growth and Momentum show this is a stock with massive potential for its early investors. Some of the most successful tech investors in history have already bought in … dubbing this stock [“The Next Google.”]( Watch Adam’s special presentation [on the stock here]( — and see why he's confident this is a stock you need to own as the next stage of AI takes off. Until next time, [Michael Carr]( Editor, [Money & Markets Daily]( --------------------------------------------------------------- [Turn Your Images On]( From our Partners at Banyan Hill Publishing. [Crypto’s Next Bull Market]( Cryptocurrency expert Ian King has identified the next crypto coin set to go through the roof. In just one year, his December 2020 recommendations gave investors returns of up 1,061%, 1,934% or even as high 18,325%. Don't miss out - follow Ian's latest advice for [full details on how you can get involved today while prices are still low.]( --------------------------------------------------------------- [Turn Your Images On] The Fed Can Declare Victory Inflation data is providing us mixed news. The [core consumer price index]( (CPI, which excludes food and energy prices) is at 3.8%, well above the Federal Reserve's 2% target. The Fed's preferred measure — [core personal consumption expenditures]( (PCE) — is much closer to the target at 2.8%. The Fed has been targeting 2% since [2012](. Over that time, core PCE has been less than 2% for most of the time. This is shown in the chart below. The black line is the year-over-year change in core PCE. The dashed horizontal line shows 2%. The blue line is the average of core PCE since then-Chair Ben Bernanke announced the 2% target. In 2020, Fed Chair Jerome Powell [said]( central bank would switch to “average inflation targeting.” That means it will allow inflation to run “moderately” above the Fed’s 2% goal “for some time” following periods when it has run below that objective. Bottom line: With the long-term average of core PCE at 2.27%, the Fed can (and might) declare victory at any time. — Mike Carr, Chief Market Technician, Money & Markets Core PCE Is Near Fed’s Target of 2% [Turn Your Images On] [(Click here to view larger image.)]( --------------------------------------------------------------- Check Out More From Money & Markets Daily: - [MEET THE NEW WAVE OF “CLOSED AI”]( - [AMAZON’S $4 BILLION BET ON AI IS A NO-BRAINER (HERE’S WHY)]( - [NVDA'S JOURNEY FROM "NEUTRAL" STOCK TO MARKET OBLITERATOR]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. 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It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe](