is this important
Experts and Sources
Return Since Inception
Portfolio Return Since Inception
Winning Stocks for 2011
Winning Stocks for 2010
Winning Stocks for 2009
Winning Stocks for 2008
Winning Stocks for 2007
Winning Stocks for 2006
Winning Stocks for 2005
Winning Stocks for
Contact: Eric Dany
Tel: 866-541-5299 (toll free)
Moline, IL CST
2 Jan 2012
Financial Newsletter Publisher Hits
Pay Dirt While Others Pan
hasn't been a "lost decade" for Prospector Newsletter Subscribers!
When the talk around the typical office water cooler
turns to the stock market and investing, most faces grow long. For them,
investing during the last several years has not been fun.
So, why is Eric W. Dany of Moline, Il., smiling
confidently? And why has he been smiling so long?
It’s no surprise to his friends and the subscribers
of his newsletters. The Stock Prospector
Mutual Fund Prospector have turned in solid returns over the last
putting Dany among a handful of other publishers whose newsletters can
point with pride to their picks. And, Dany has another reason to smile:
the newsletter owner and publisher said his personal investing follows his
Stock Prospector and Mutual Fund Prospector both had decent performance in
what turned out to be another tough market.
both the Stock Prospector and Mutual Fund Prospector have racked up
solid gains for our subscribers.
Dany backs up
his statement with facts. For example, his Stock Prospector's annual Winning
Stocks picks have trounced the market since 2004--gaining an average of
17.2% versus 6.0% for the market.
In 2011 his Winning Stock picks
beat the market, but not by as much as other years. Still, a win is a win,
especially in today's roller coaster market.
Dany said, "My 2011 Winning Stock Picks were up an average of 2.6%, while
the S&P 500 Index was off 0.3%, the Nasdaq Composite lost 2.4% and the
small cap Russell 2000 declined 6.3%. Only the Dow Industrials was up
more, gaining 5.3%."
(2011) started out just fine and our picks moved up much more than the
market market trading as high as an average 38.0% gain. But then in August
the European credit crisis kniocked the market down and we ended up 2% to
8% ahead of the broad market averages."
"I'll take credit for another win in 2011, but I have much higher
expectations for our 2012 Winning Stock Picks."
Dany says his secret to success is finding under-valued
stocks and then holding them for substantial gains. He adds that,
"Most investors don't have enough patience."
“My mutual fund model-portfolio, since inception in
1999, has returned 112.6%, beating the market in eight out of the last
calendar years. Over the same time period, the market gained 42.2%. Yes…that is +112.6% versus
+42.2%. Even better is the
year return of the aggressive portfolio...it has gained +182.1% since
To what does he attribute his success while others
were stumbling? Dany credits his strategy that selects better
performing equity styles along with a core holding of index funds. The strategy does not involve dart-throwing.
“My mutual fund investment strategy combines
funds and equity style timing of actively managed funds,” he said.
“The index funds provide stability during uncertain times and equity
style timing selects funds in the better performing style trends in
the market, giving the portfolio the opportunity to outperform the market.
“The experts say equity style timing won’t work,
however, I think the market has given my strategy a very challenging test
during the last thirteen tumultuous years and the results have been very positive.
the rough and tumble markets we have added two more conservative portfolios to the mutual fund letter--actively managed balanced portfolios. The balanced portfolios features 60%
equities and 40% bonds. The portfolio will enable investors to lower
their overall risk.
the actively managed balanced portfolio may ultimately outperform the
market over the long-term, but it will take a couple of full-market
cycles to establish actual results.
Overall the response to his
strategy is very favorable. One investor/subscriber, William P. of Pittsburgh, Pa.,
wrote this to Dany: “You helped me when the market was going up and
saved me when the market went down. Another 20% staying in growth (style) would
have been a $150,000 loss.”
Outperforming the Market
The Stock Prospector
Winning Stocks for 2011 recommendations beat the market with an
average return of 2.6%, outperforming the losses of most market
Since 2004 the Stock Prospector
Winning Stocks recommendations have outperformed the market by
an average of 11.1% returning 17.2% versus a market average of 6.0%.
The Mutual Fund Prospector
newsletter trounced the market averages over the last thirteen years.
Tough times for most investors--As some have called it--"A
Lost decade!" -- Perhaps that's appropriate
for some investors, but not for Prospector Newsletter Subscribers.
The Model Portfolio's
thirteen year return was 112.6% versus 42.2% for the market.
Portfolio which is simply the actively managed
funds in the Model Portfolio returned 182.1% vs 42.2% for
The Hulbert Digest
tracks the Prospector Newsletters
Why is this
the market by 3.2% and 5.6% annually. For perspective, Peter
Lynch, legendary manager of Fidelity
Magellan, outperformed the market by 13.4% annually over the 13
years he managed the fund. (And we might add, during one of the
strongest bull markets in history.)
Source – Fidelity Press Staff
For more information see the article:
Mutual Fund Prospector - December 1999 (PDF
The mutual fund investment strategy combines a market index
fund and equity style timing of actively managed funds.
Reviews of financial literature do not find these strategies
The core index funds provide stability during uncertain
times and equity style timing selects the better performing style
trends in the market giving the portfolio the opportunity to
outperform the market.
Equity style timing identifies the better
performing style trends in the market and top performing funds in
Equity styles are based on
markets (domestic, foreign, real estate, commodities, alternative
investments; market size (large, mid
and small capitalization) and financial fundamentals (growth or
value) - Similar to the Morningstar Style Boxes - ie. large cap
Between 1974 and 1998 the S&P 500 Index
outperformed more than 75% of the public equity mutual funds. The
annual return for the S&P 500 was close to 2% better than that
of the median fund.
Source - Burton Malkiel – A Random Walk Down
Wall Street pg 374.
There are many benefits to index funds, they outperform
80% of mutual funds over the long term, they typically have low
managerial fees and they are tax efficient.
Equity style timing is an investment strategy that
invests in various market styles, or asset classes, switching between equity styles as
market conditions change.
Eric Dany says "I have
not been able to find many references in financial
literature about equity style timing." Information from Duen-Li Kao and Robert Shumaker’s
study, "Equity Style Timing" appeared the Jan/Feb 1999 issue
of the Financial Analysts Journal.
A recent book,
The Ivy Portfolio, describes an investment
strategy that is similar to the Prospector's equity style timing, but
it uses exchange traded funds, not actively managed mutual funds and
it does not benefit from using core index funds.
For more information see the article:
Alley – Equity Style Timing
Mutual Fund Prospector August 1999 (PDF
Detailed explanation of
investment strategy includes Peter Lynch and Academic Alley - Equity
Style Timing articles (PDF
Bio of Eric W. Dany
Eric Dany has been investing for over 45 years. He has a BSME
from Rose-Hulman Institute of Technology (1969) and MBA from the
University of Florida (1979).
Eric began publishing his
newsletters in 1999. Since then he has successfully guided investors
by applying an easy to use and understand disciplined, quantitative
He has been featured in
articles appearing in:
Bottom Line Personal
The Kansas City Star
The Houston Business
Stephen Lord's "Wall
Street Column" - Knight Ridder/Tribune Business News
The Sun News - Myrtle
Beach - Stock Tips from Financial Newsletters
Eric has also been a featured
guest on the drive-time talk radio show "Market Warp" with Moe
Leslie Masonson's book,
All About Market Timing features
information about Eric's letter.
Eric has appeared as a guest speaker
at AAII Chapter meetings and would be pleased to speak at similar
What are index funds?
What are equity styles?
What is equity style timing?
How do you track equity styles?
How do you select the portfolio’s
actively managed funds?
How do you forecast the market’s
Experts and Sources
Hulbert Financial Digest, Mark Hulbert, Editor
5051-B Backlick Rd
Annandale, VA 22003
John C. Bogle,
CEO of Vanguard Group
Bogel Financial Markets Research Center, c/o The
PO Box 2600
Valley Forge, PA 19482-2600
Bogle on Mutual Funds
Common Sense on Mutual Funds
and other works
Burton G. Malkiel, Professor of Economics
Princeton, NJ 08544
A Random Walk Down Wall Street
Contact: Eric Dany
Moline, IL CST