GlobalTrekker

Smarter Way to Pick High Yield Stocks?

This is a well-done analysis based on Schwab's report, but overall I am really suspicious of this kind of research. It's very much data-mining and has no checks for survivor-bias, data adjustment, data quality, etc.. Essentially, the differences between segments are most likely too small to be statistically significant, and the data-crunching too marred by Schwab's non-rigorous methods. Once you had accurately adjusted the equities for all true distributions, mergers, delistings, etc. I think you'll find the results are more random-walk than anything else. If you really believe in this method, try it with the above stocks on paper for the next 6 months and see how it truly performs compared to the others. I will bet you big that the results will not be what you are predicting now.