Wednesday, January 2, 2013

You rubes got all caught up in that fiscal cliff hysteria?  Quant apparently knew the politicians would vote for lower taxes and more spending, that’s about the safest bet around these days.  Our top ranked funds were well positioned for Monday’s rally and the one that’s taking shape today.  The US still rules the ranks and we see two of them tied for 1st place this morning.

New to the top 10, the Powershares Dynamic Energy Fund (PXI) is one of several energy sector funds scoring better.  A very strong Fundamental Score of 88.2 gets a boost from a dividend rise and its decent 65.1 Behavioral Score gets a boosts from a high Implied Volatility Score.  Other high ranking energy funds are seeing similarly strong Sentiment Scores suggesting a bullish turn could be in store for this group.  Tied with that in 1st place today is the iShares Russell 2000 Growth Fund (IWO), which has spent much of the past month in the top 10.  The 1,124 small cap growth stocks in this fund aren't cheap compared to the market but in their own historical context they are cheap enough to get a 71.5 Fundamental Score.  Behaviorally they look even better with an 85.5 Sentiment Score suggesting too much pessimism in this group too.  Indeed, Quant’s biggest gainer list today sees a large number of small and mid cap funds, many due to better behavioral scores.

So cheer up investors!  Keynesianism is alive and well and we’re all on easy street for the foreseeable future, as long as Uncle Ben keeps his helicopter flying.  Quant wants to stick with the country that’s so promiscuous about printing its own money, at least for now.

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