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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: mungofitch ✹✺🐝 SILVER
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Number: of 6243 
Subject: Re: Non-Mag7 screen
Date: 08/14/25 8:05 AM
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PS, the reason I looked into this and posted the screen.

Right now the giants have been the place to be, for a long time. The concentration is getting worrisome for those who believe in any degree of normalcy returning, but the market can remain (what some would call) irrational for longer than you can stand it. If they remain the only place to "keep up" and do well, then switching away from them too early is the same as being wrong--you risk a long stretch of underperforming, which is both maddening and not great for the pocketbook.

So the idea here is to have your cake and eat it too...if this screen worked as advertised, you could switch to that and still do well even if the giants continue to soar for years more...it removes the need of calling the relative top for one group versus another, since it does well anyway. Relative to cap weight index, specifically.

Sometimes subset A is best, sometimes subset B is best, so most folks want to be in the right one. But if subset C is pretty good all the time, there is no need to gamble on timing your switches.

Emphasis on "if", of course.

Jim
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This community has written 6,227 posts about Mechanical Investing. The article-length ones it recommended most:
Dividend investing · 52 recs · 2025
Non-Mag7 screen · 34 recs · 2025
OT - Div yields and returns · 32 recs · 2024
Using AI to generate backtesting programs · 30 recs · 2025
Rankings for 19Dec2022 · 29 recs · 2022
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