tag:blogger.com,1999:blog-17478547.post406509582235097431..comments2024-03-27T20:17:30.597+08:00Comments on Growing your tree of prosperity: Letter to Batch 13 of the Early Retirement Masterclass.Christopher Ng Wai Chunghttp://www.blogger.com/profile/15534057160494859977noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-17478547.post-90831235602056187832020-05-16T11:14:53.030+08:002020-05-16T11:14:53.030+08:00Yes, the Z-Score will play an increasing role in f...Yes, the Z-Score will play an increasing role in future courses as it is getting some traction in my course. I will cover the research papers on the empirical basis of this approach in my program. <br /><br />As I am warier of short strategies, so I currently do not teach shorting stocks with the lowest Z-Score but logically this is a great way to design a market neutral fund. <br /><br /> <br /><br />Christopher Ng Wai Chunghttps://www.blogger.com/profile/15534057160494859977noreply@blogger.comtag:blogger.com,1999:blog-17478547.post-80385565126223092092020-05-15T22:51:10.754+08:002020-05-15T22:51:10.754+08:00Hi Chris, I attended your previous webinar and am ...Hi Chris, I attended your previous webinar and am intrigued with the Z-scoring method you introduced to the audience. Indeed, I am from engineering background and actually could follow the process. Would you be covering such quant methods to your future classes?<br /><br />Secondly, while the Z-scores gives you a way to systematically pick stocks with better factor attributes, is there any evidence or research that such a method works in the first place and that it can consistently yield market-beating returns over the long run ?<br /><br />Thirdly, while the Z-scores help to generate buy signals, what would then be the approach for sell signals - is it the same process whereby you simply rebalance , say maybe once a year, by always buying the stocks with top Z-scores and selling the ones whose Z-scores have weakened ?<br /><br />The approach shown is systematic but nothing has been shown on the long term performance, hence interested to hear your thoughts.<br />Do you teach and apply this strategy for future classes, going forward? Or is this strategy still evolving ?<br /><br />Thanks Khhttps://www.blogger.com/profile/09761775951886323893noreply@blogger.com