Summary
- Timing is critical in investing; leveraging technical and fundamental signals can significantly outperform traditional buy-and-hold strategies.
- Our diversified portfolio models—Piotroski-Graham Value, Positive Forensic, and Growth & Dividend—have consistently beaten the S&P 500 since 2018.
- Applying timing signals to even long-term value stocks enhances returns and helps avoid major downturns, as shown with Teekay, Inter & Co, and Tapestry.
- Ongoing sector rotation and risk diversification, guided by proven financial models and market signals, offer strong opportunities for future profit.
- All the new long-term value portfolios for 2025 will be released at the end of June!
Introduction
In finance, the Time Value of Money (TVM) demonstrates that the value of a dollar today exceeds its worth in the future due to potential earning capacity, emphasizing the strategic importance of timing in investments, debt management, and capital allocation. Time is an invaluable resource, often equated with money, wellness, and success across various life domains. – C. A. Saliya (2024)
If you believe, like I do – that there is much more to stock trading than just buy, hold, and hope that every selection reaches a promised price target at some unknown date – then these trading models are for you. This article highlights some of our recent top trades from three very different portfolio models, ranging from aggressive short-term weekly breakouts to long-term growth and value portfolios with high dividends, as well as ETFs.
Timing matters, and it matters greatly. I have spent the last 35 years trading, researching, and constructing algorithms to identify and leverage the value across fundamental, technical, and behavioral finance models. Of the ten portfolio models designed for optimal portfolio mixes for members to beat the market at Value & Momentum Breakouts, eight come from enhancing well-tested anomaly research in published financial journals. Some prior articles are available here:
- Total Return Breakouts: Semiconductors, Nvidia, and the Best Piotroski Value Stocks
- Total Return Breakouts: Palantir, Quantum Computing, and Market Timing Part II
- Total Return Breakouts: Highest Positive Signal of the Year Fuels Short Squeeze FOMO
Three Trades from Different Portfolio Models
In this article, I provide a sampling of how we use the optimal portfolio models to identify long term continued strength, short term aggressive breakout stocks, and even apply timing models to long-term value stocks for the best results. As I repeatedly tell our investment community, it is important to not only diversify your stock selections, but it is also critical to be where the market fund flows are improving for the best returns. As many long-term traders know well and the chart below illustrates, it is very rare for one type of investment to lead in consecutive years. More details explaining our process in my 2025 Market Forecast article. I am certain again this year that we will see more rotation, and if you are just riding the buy and hold approach, you can find yourself in a painful situation.
