We have several times mentioned that T-Advisor has its own scoring for the assets. It is like the old marks that we got in the school, but this qualification is linked to our investments.
T-Advisor has a module that shows the best assets classified by the score. The question is: Should I include these assets in my portfolio? In fact, this is a good idea, but we do not have to forget two things:
- Past performances do not guarantee future ones.
- We have to be watchful of our investments, because markets change continuously.
If we look at our monthly top score (that we publish in this blog), we have always found interesting stocks and funds, because they usually have high performances. This fact is clearer in stocks than in funds (specially, in fixed-income funds).
However, it is interesting to see the evolution. It is not usual that top score assets repeat. Markets are naturally unstable, but instability does not mean something negative. It just means that there are continuous ups and downs and investors should regularly look into and watch their portfolios.
Our top score specifies the best performing assets with our best score in a specific moment. They give us clues about countries and sectors that are moving positively. Our score detects also these changes and includes them in the qualification. That is why our score is also live. It is not a mark that provides a position for a long term. On the contrary, it is always near the reality and sudden changes are also detected and included.
Top score assets provide guidelines about possible interesting movements, but investors do not have to move their strategies to certain assets guided by the moment. They have to look at the long term, instead of short-term impulses.
So, if you finally ask: then, what to do with the top score assets? In or out of my portfolio? The answer is: it depends. Check if they match your investment strategy and read the full T-Report. Then, take the decision and check regularly your portfolio and the changes in the scoring in the assets.