Username Password
S&P 500: 2,002.28
Change: -0.05%
Vet67to82
P&P Score: 99.57   Points: 86.75   Accuracy: 73.88%   Average Pick Score: -2.66   Annual Return: 23.27% (111.11% since 11/25/09)  

Vet67to82's Blog : A 4 or 8 Stock Market Proxy ?

Date March 18, 2010    Comments Comments (1)    Rate this post Recommend This Post (104)   
Bookmark and Share
Abuse this post  Report Abuse
Please report this as abuse only if you believe it violates People And Picks  Terms of Use
You must log in to send an abuse report.
Share ThisShare This
A couple of articles recently suggested using the first 4 stocks, or all 8, in the list to avoid fund fees and with a good daily correlation to the market, about 90% with the first 4, and 95 % with all 8 . Here is the list:

3/18/2010 1:34 PM ET Market Closes: 2hr 26min

Symbl Price $ Chg % Chg Volume Bid Ask
(1) UTX 72.51 +0.32 +0.44 1,688,977 72.50 72.51
(2) DD 37.02 +0.53 +1.45 10,130,953 37.02 37.03
(3) DIS 33.71 -0.04 -0.12 4,648,927 33.71 33.72
(4) XOM 67.31 -0.05 -0.07 15,875,875 67.31 67.32
(5) AXP 40.88 -0.13 -0.32 2,988,544 40.88 40.89
(6) VZ 30.36 +0.21 +0.70 5,388,400 30.35 30.36
(7) IBM 128.65 +0.89 +0.70 2,774,077 128.65 128.67
(8) WMT 55.79 -0.13 -0.23 5,428,561 55.79 55.80


Curiously, the articles don't mention whether you should consider equal share numbers, or equal dollar amounts, or a different mechanism. So, I intend to run the math myself based on the following fundamentals: Hmmm! Different Betas, Market Caps, etc ... so this ahould be interesting.

(1) United Technologies Corp (UTX) 72.43+0.24/+0.33% 12:33 PM ET
Beta 0.97
Dividend & Yield 1.70 (2.36%)
Earnings/Share 4.12
Forward P/E 13.64
Market Cap. 67.84 Bil
P/E 17.58
Return on Equity 21.37
Total Shares Out. 936.41 Mil
Stock Scouter Rating: 7 out of 10

(2) E I du Pont de Nemours and Co (DD) 37.01+0.52/+1.43% 12:37 PM ET
Beta 1.38
Dividend & Yield 1.64 (4.56%)
Earnings/Share 1.92
Forward P/E 13.79
Market Cap. 33.53 Bil
P/E 19.32
Return on Equity 25.17
Total Shares Out. 903.84 Mil
Stock Scouter Rating: 8 out of 10

(3) Walt Disney Co (DIS) -0.20/-0.59% 12:40 PM ET
Beta 1.15
Dividend & Yield 0.35 (1.04%)
Earnings/Share 1.76
Forward P/E 14.72
Market Cap. 65.11 Bil
P/E 19.18
Return on Equity 9.61
Total Shares Out. 1.94 Bil
Stock Scouter Rating: 7 out of 10

(4) Mobil Corp (XOM) 67.12-0.24/-0.36% 12:42 PM ET
Beta 0.43
Dividend & Yield 1.68 (2.49%)
Earnings/Share 3.98
Forward P/E 9.24
Market Cap. 317.03 Bil
P/E 16.87
Return on Equity 17.25
Total Shares Out. 4.72 Bil
Stock Scouter Rating: 7 out of 10

(5) American Express Co (AXP) 40.54 -0.47/-1.15% 12:43 PM ET
Beta 2.10
Dividend & Yield 0.72 (1.76%)
Earnings/Share 1.53
Forward P/E 12.56
Market Cap. 48.68 Bil
P/E 26.42
Return on Equity 13.78
Total Shares Out. 1.20 Bil
Stock Scouter Rating: 5 out of 10

(6) Verizon Communications Inc (VZ) 30.34+0.19/+0.63% 12:46 PM ET
Beta 0.62
Dividend & Yield 1.90 (6.30%)
Earnings/Share 1.29
Forward P/E 12.14
Market Cap. 86.09 Bil
P/E 23.53
Return on Equity 8.76
Total Shares Out. 2.84 Bil
Stock Scouter Rating: 8 out of 10

(7) International Business Machines Corp (IBM) 128.31+0.55/+0.43% 12:53 PM ET
Beta 0.79
Dividend & Yield 2.20 (1.72%)
Earnings/Share 10.01
Forward P/E 10.64
Market Cap. 166.54 Bil
P/E 12.81
Return on Equity 74.37
Total Shares Out. 1.30 Bil
Stock Scouter Rating: 9 out of 10

(8) Wal-Mart Stores Inc (WMT) 55.76-0.16/-0.29% 12:56 PM ET
Beta 0.24
Dividend & Yield 1.21 (2.16%)
Earnings/Share 3.70
Forward P/E 12.69
Market Cap. 212.34 Bil
P/E 15.23
Return on Equity 21.19
Total Shares Out. 3.81 Bil
Stock Scouter Rating: 8 out of 10.:

Tags : UTX   DD   DIS   XOM   AXP   VZ   IBM   WMT  

1 Comment(s):

Author Vet67to82     Date March 19, 2010 11:34 Abuse this post Report Abuse
Please report this as abuse only if you believe it violates People And Picks  Terms of Use
You must log in to send an abuse report.
II'm looking for the article on the first 4 stocks that refered me to this article covering the eight stocks:

" An Eight-Stock Index Fund with 95% Accuracy "
March 17, 2010

By Ed Elfenbein, Editor, Crossing Wall Street

http://www.investorplace.com/experts/ed_elfenbein/index-fund-eight-stocks-utx-dd-dis-xom-axp-vz-ibm-wmt.html



Want to comment on this post? Sign up now. It's FREE!
Already registered? Log In.
Sponsored Links
Free Options Trader Guide