Different types of investment portfolios to keep an eye on

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Notes: Data from Bloomberg as of the close of Dec. 9, 2022. Norman has an interest in some of the stocks shown. Yield=indicated dividend yield, Volatility=annualized volatility over the past 260 days, P/E=price-to-earnings over the last four quarters, 12 month return=total return over the last 12 months including reinvested dividends.Use our portfolios and stock screens as a starting point for further research.

Watch your step with stocks that trade infrequently, and those with very low share prices, because they may be difficult to buy or sell in a cost-effective manner. Before dashing off to the market, recognize the built-in limitations of quantitative methods such as ours, because less tangible factors can be important. For instance, the quality of a company’s management can sometimes help – or hinder – a business.

And while we hope our portfolios achieve similar returns to those in the back-tests, the market isn’t that predictable. Even in the best circumstances, we expect results to be bumpy and some individual stocks will disappoint. We would be pleased indeed for the portfolios to outperform the market over the course of a few decades.Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter.

 

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