We are holding Apple Inc. (Symbol: AAPL) Meta Platforms Inc. (Symbol: META) NVDIA Corp (Symbol: NVDA) and Tesla Inc. (Symbol: TSLA) from our previous update. We are removing Citigroup Inc (Symbol: C) Walt Disney Corp (Symbol: DIS) and Invesco QQQ Trust (Symbol: QQQ) We are adding 1 additional company this week. The model is also keeping 37.50% cash. We are adding Lockheed Martin Corp (SYMBOL: LMT) the closing price on February 28, 2023 was $474.26
The quantitative model that we use to power this newsletter tends to outperform the averages when the averages are trending. As market get choppy (violent swings in either direction) the model usually doesn't have it's best periods.
Since we are light on new additions in this update, I wanted to at least give you a definition of what a "Quant Model" is and how it helps us staying ahead of the averages. Here is the definition of Quantitative analysis:
"Quantitative analysis is a method of using mathematical and statistical techniques to analyze data, often with the aim of understanding a particular phenomenon or making predictions about future outcomes. In quantitative analysis, numerical data is collected and analyzed to identify patterns and trends, to describe relationships between variables, and to make inferences about populations based on samples.
Quantitative analysis can be applied to a wide range of fields, including economics, finance, social sciences, and natural sciences. It can involve a variety of techniques, such as regression analysis, hypothesis testing, and statistical modeling.
Overall, the goal of quantitative analysis is to provide objective and reliable insights into complex phenomena by using rigorous mathematical and statistical methods."
I've always felt one of the biggest advantages of using a model is that you can back-test and it helps take the emotion out of the equation. Emotion in investing and trading leads to action but it usually is the wrong action.
Thank you for putting your trust and time into my ability to create a model that will hopefully add value to all of us. I've started this journey in 2000 as a Nasdaq Market Maker. I also worked as a Proprietary trader, Financial Advisor and currently I manage a hedge fund. I have learned many lessons throughout my career and still continue to learn to this day. I look forward to sharing my experiences with you via this newsletter.