Our suggestion to investors in this optimistic Trump 2.0 climate is to not chase the highflyers and instead focus on high-quality businesses at reasonable prices. “High quality” means fundamentally strong, displaying a history of consistent, reliable, and accelerating sales and earnings growth, positive revisions to Wall Street analysts’ consensus forward estimates, rising profit margins and free cash flow, solid earnings quality, and low debt burden—and we want the stock to be trading at a reasonable valuation relative to its own history and its industry peers..

The next-generation “Sabrient Scorecards” can help with this by doing most of the stock evaluation for you. We've already done the individual factor backtests and creation/testing/validation of predictive, quantitative, multi-factor ranking models.

These are the same factors Sabrient employs in selecting our portfolios, including Baker’s Dozen, Forward Looking Value, Dividend, and Small Cap Growth, which are packaged and distributed as unit investment trusts (UITs) by First Trust Portfolios. We also use many of them in our SectorCast ETF ranking model. And notably, our proprietary Earnings Quality Rank (EQR) is a key factor in each of these models, and it is also licensed to a number of hedge funds and to the actively managed, absolute-return-oriented First Trust Long-Short ETF (FTLS).

Sabrient founder David Brown discusses these and other factors in his new book, How to Build High Performance Stock Portfolios, which is available on Amazon.com for investors of all experience levels. David describes his path from NASA engineer on the Apollo 11 moon landing project to creating quant models for ranking stocks, and how to methodically and strategically build wealth in the stock market in four distinct investing strategies—growth, value, dividend, and small cap.

Here is a 4-minute video providing a brief overview of our next-gen Scorecard for Stocks (user-friendly Excel format):

To learn more about David's book and the companion subscription to our next-gen Sabrient Scorecards for Stocks and ETFs (including a free trial offer), please visit:
https://DavidBrownInvestingBook.com

Read on....

  by Scott Martindale
  President & CEO, Sabrient Systems LLC

With stocks holding up near their all-time highs in the face of a towering Wall of Worry, it is apparent that investors have been reluctant to sell for fear of missing out (FOMO) on continued upside.

However, at the same time, there has been something of a lid on further upside as valuations are at lofty levels, with the S&P 500 and Nasdaq 100 at forward P/Es of 22.4x and 27.0x, respectively, while the 10-year yield has been on the rise (recently eclipsing 4.30%), which tends to hold down valuation multiples. Indeed, many of the most prominent investors are wary, including the likes of Warren Buffett, Jamie Dimon, and Jeff Bezos, while corporate insider buying has slowed.

So, bulls and bears appear to be at a standoff, perhaps awaiting a catalyst from earnings season and the election outcome. And depending on how things transpire, markets are likely to experience some volatility (like today!). I have been anticipating a market pullback followed by higher prices by year end and well into 2025, buoyed by the combination of a dovish Fed and rising global liquidity—and potentially from reduced taxes and red tape in the New Year. In any case, any surprise that leads to a selloff—other than a cataclysmic “Black Swan” event—would likely be a buying opportunity, in my view.

But with the momentous election just a few days away (I can’t wait for it to be over!), I thought it might be a good time to share some timeless market wisdom, insights, and levity by compiling a list of 55 investing proverbs to live by. The first several have no particular author that I can discern, but for the rest I show a byline. Here we go:  Click HERE to continue reading

In this WealthManagement.com article, Brian Jacob peeks inside portfolios invested in strategic beta ETFs, such as Direxion's All Cap Insider Sentiment Shares ETF (KNOW) which tracks the Sabrient Multi-cap Insider/Analyst Quant-Weighted Index (SBRQAM). Read article

In an interview with Howard Gold of the Money Show Video Network, Sabrient's Chief Market Strategist David Brown reviews some of the specialized indices that Sabrient has developed for ETF providers. Tickers: DEF, NFO.