Educational Programming Video
The Value Line Investment Survey
Program 24: Selection & Opinion
In this session we'll review Selection & Opinion, the weekly newsletter that is published as part of The Value Line Investment Survey.
Selection & Opinion is normally a 12-page publication. Its format occasionally changes, but in most weeks, the front cover contains Value Line's Economic and Stock Market Commentary. This is where we provide our thoughts about current economic developments and investment advice about the stock market. Our investment advice here is in the form of a recommended allocation for assets that are available for investment in the stock market. Our allocation recommendation is always between stocks and cash, by which we mean any safe short-term financial instrument such as a money market fund, a Certificate of Deposit, or a Treasury bill. Most investors also own taxable and tax-exempt bonds, real estate and other things, but our allocation is only for funds that are normally set aside for investment in equities.
Moving inside the publication, there are usually one or two full-page stock recommendations or stock reviews. One is often what we call a stock "Highlight," which is a discussion of a stock that Value Line currently rates 1 for Timeliness. The other may also be a "Highlight," but it can also be a recommendation for a long-term investment, a stock for income, or even an industry review. Every week we also publish three sample portfolios that are designed to provide suggestions for the types of stocks investors with different objectives might want to own. One portfolio contains stocks with above-average year-ahead price potential. This portfolio is primarily suitable for more aggressive investors. A second portfolio contains stocks for income and potential price appreciation. This is primarily suitable for more conservative investors. A third contains stocks with long-term growth potential. This is primarily suitable for investors with a long-term horizon. The results of these portfolios are published quarterly, usually three or four weeks after the end of the quarter.
Each week we also publish a wide variety of economic and stock market statistics. One page contains monetary statistics, including selected yields on a wide variety of taxable and tax-exempt bonds. It also contains Federal Reserve data, including bank reserve and money supply information. Another contains charts of a number of economic statistics and major insider transactions. Still another contains many stock market statistics. It includes data on such items as price/earnings ratios, dividend yields, and Federal funds, T-bill, and 30-year Treasure bond yields. It also shows the stock price performance of the best and worst acting industry groups over the past six weeks and changes in Financial Strength Ratings of companies in The Investment Survey.
The back cover of each issue contains graphs and statistics of a variety of mostly proprietary Value Line data. One graph shows the 16-year record of the Dow Jones Industrial Average and the Estimated Appreciation Potential, the Estimated Price Earnings Ratio, and the Estimated Yield of the stocks contained in The Value Line Investment Survey. Other graphs contain the price history for the past five quarters of the Value Line Geometric Composite, Industrial, Rail, and Utility averages. There is also a table of various market statistics for each of the past five days.
Selection & Opinion also contains several periodic features that are very popular. One is the Industrial Composite, which is published twice a year. This feature is an aggregation of data on more than 600 industrial companies, and Value Line publishes the information in the same format as we do for any single industrial company. Another is our Quarterly Economic Forecast, which contains a detailed economic forecast for the coming 12 to 18 months. Still another is our semiannual review of the performance of our Timeliness and Technical ranks. The review includes both statistics and graphs showing the annual results of stocks ranked 1, 2, 3, 4, and 5 for the past 35 years. The results, by the way, have been extremely good. You should look at them.
That's it for now. Thank you for joining us. Please be sure to visit our Web site, www.valueline.com, during each day to get our latest stock market and economic commentary. We also issue information on selected stocks in the news each day.
Factual material is obtained from sources believed to be reliable, but the publisher is not responsible for any errors or omissions, or for the results of actions taken based on information contained herein. Nothing herein should be construed as an offer to buy or sell securities or to give individual investment advice. © 2013 Value Line Publishing, Inc. RIGHTS OF REPRODUCTION AND DISTRIBUTION ARE RESERVED TO THE PUBLISHER. The Publisher does not give investment advice or act as an investment adviser. Value Line, Inc., its subsidiaries, its parent corporation and its subsidiaries, and their officers, directors or employees as well as certain investment companies or investment advisory accounts for which Value Line, Inc. acts as investment advisor, may own stocks that are mentioned on this Value Line Web site.