Is anyone using AAII's Stock Screens or SiPro?

[davidaross]

It seems a good strategy with a 401K to invest using AAII guidance, or their tool SiPro. For example, looking at link Performance History | AAII: The American Association of Individual Investorsit seems like several methods outperform the indexes, e.g.,

Graham Enterprising Investor, Revised,
Piotroski Hi-F Score,
O'Shaughnessy Tiny Titans
O'Neill's CAN SLEM
Neff
Zweig
MAGNET Simple
Est Rev: Up 5%

Additionally, SiPro can be used at any time to get the candidates. Some additional screens developed at Keelix.com, momentum screens, appear to perform even better for 4 week holds, picking a list of screens and only the top few.

Comments?

 

[braumeister]

Some do better, some don't.
Screens are interesting, but only as a way to identify candidates for your own research.

 

[EvrClrx311]

Screening or quant investing is very good if you know how to do it properly. That requires a lot of time and research. Tools can assist, but unless you understand them inside and out, you're really no better than the guy throwing darts at a wall. Most investors on this board aren't likely to follow investing advice based on charts or graphs. As braumeister said, some do better than others.

Most at or near retirement will likely use index funds for any portion of their assests invested in stocks. Screens have high returns, but also high risk... something those here look to avoid.

O'Shaughnessy Tiny Titans is one that I've used the last 5 years for a very small portion of my investments (just a couple thousand total). It is a wild ride. Overall it has beaten the S&P500 by a total of 25% the last 5 years (historically its backtest shows it averages beating the market by 11%...). I'm not going to complain moving forward if it continues to outperform the market by an average of 4.5% a year, but I've had a year where it beat the overall market by 44% and another where it trailed it by 27%... I'm giving it another 5 years to see how it continues to do in real time. So far, it is a lot more volatile than the backtest of the screen indicated it would be.

Just an example why most in or at retirement would tend to avoid this kind of investing for any sizable portion of their assets.

 

[ERhoosier]

I've been tempted to commit some real $$ to AAII's Shadow Stock portfolio. Seems to have done well over it's published life span, but the potential volatility of stock in generally smaller companies not widely followed by the 'pros' makes me a bit uneasy.