Investing without a scientific understanding of risk exposes portfolios to unnecessary losses. According to ERS's Fiduciary Risk Rating, FNMA has always been unsuitable for fiduciaries to own.
On 8/30/2024, Eli Lilly’s (LLY) market cap was $864 billion, price $960, and $39 billion TTM revenues. Its P/S was 22. Advisors using ERS’s ProfitMap.ai could have quickly and easily seen “what must happen” for LLY’s price to rise.
Moderna’s price on August 9, 2021 was $484.47. Today, 1/13/2025, it traded as low as $32.03 - a loss of 93%. Equity Risk Sciences has 9 proprietary ratings. On August 9, 2021, all of ERS’s ratings were extremely negative.
Investment professionals have a fiduciary duty to analyze both the upside potential of a stock and its downside risks. And the most reliable method to fulfill this responsibility is by using data sciences, statistics and AI.
Has Apple become a stronger, less leveraged and more liquid company than it was 3 years ago? What are the primary concerns?
Market risks are concerning; America's top 10 firms command $21 trillion in market value. For conservative investors, what constitutes a reasonable P/E ratio? Many of today's equity funds have concentrated their investors' holdings in these richly valued stocks, which carry an average P/E of 35.
The PRI™ performance study provides a robust foundation for data-driven portfolio management. By integrating PRI™ into their practice, RIAs can fulfill fiduciary duties, enhance risk-adjusted returns, and provide clients with transparent, evidence-based investment strategies.
Equity Risk Sciences identified the "Very Dirty Dozen" – a group of 12 stocks with exceptionally high risk according to our proprietary risk ratings.
My goal is to help fiduciaries realize that their primary responsibility as a fiduciary is to protect their clients’ assets from significant losses AND clearly demonstrate that the only effective way to achieve and fulfill their responsibilities is by measuring and rating the probability of a stock falling and remaining low.
Several smaller companies outperformed Microsoft from 12/31/99 to 12/31/24. ERS identified these standout performers—Deckers Outdoor, Old Dominion Freight Line and CorVel—through its proprietary low-risk PRI™ (Price Risk Indicator) and FRR™ (Fiduciary Risk Rating) stock ratings. Deckers outperformed Microsoft 118-fold, while the other two stocks outperformed Microsoft by 32-fold and 5-fold, respectively.