King Edward’s Investments

Introduction

The markets today are in turmoil. Tariffs and wars are wreaking havoc on the lives of hundreds of millions of people in the west. In Canada, American tariffs have all but stunted our economy and all sectors but the precious metals sector is felling it. So it was important to filter out short term investments that could be held for less than 10 days and return from 5% to 10% gains over the period. The csv files included with this document (500 Mil 1 Bil 10 Bil) may be used to determine the current best and next best investment if used correctly. For instance, the current Ranking system is pre-filtered for companies with a positive SLOPE20 and negative Z_SCORE (the SLOPE20 being the most recent 20 day price slope and the Z_SCORE being the deviation from the price index for a company) producing a list of viable investments that trade-off between price and strength. Furthermore, included in the ranking is the 10%OPPS, which is a measure of the number of times in a 7 day span over the course of 60 days a company traded for more than 10% gains. It is the purpose of the Ranking system to find large short term value in the markets. Three ranges of companies were chosen to represent the markets, Mega Cap, Large Cap and Small Cap and the total number of corporations ranked are ~335. Although no ranking system is perfect, with a little insight, solid decisions can be made.

Environment

The current economic environment in Canada is bleak. Donald Trump has imposed tariffs on Canada and has therefor increased the price of Canadian goods in America. This has spawned a trade war between the two countries and sparked negative sentiments by the people in both nations. Buying Canadian goods in Canada is openly promoted by the media and the same is true (to buy American goods) in America. This mentality will only have a further negative effect on Canada, which is non more evident that the effect it has had on corporations such as SHOP.TO which deals mainly in internet marketing and should not feel the effects of the tariffs too much, however, its price has plummeted in recent weeks like most other Canadian stocks.

Conclusion

There are currently no viable investments to be made as the Z_Scores of each company with a positive 20 day trading slope are all too high, recall a viable trade value for the Z_Score is less than -1.65. However, due to their strength during the recent market downturn companies to watch are: