Stock Sector Investing Via Quantitative Modeling In Excel

Enhance investing by selecting the right stock sectors and using a hedge to navigate stock market downturns

What you'll learn

Learn about quantitative Investing & how it is different from conventional methods of investing
Know the pitfalls of buying and holding a pure stock portfolio
Know the different stocks sectors and their ETFs
Understand the concept and rationale behind sector rotation
Learn a quantitative approach to select the right sectors for investment
Learn how the use of a dynamic hedge can improve the overall investment performance
Know both the strengths and weaknesses of the Sector Rotation Strategy
Use critical Excel lookup, logic, math and statistical functions required for modelling in this course.
Understand the intuition, math and know how to implement financial concepts such as Returns, Correlation and Risk
Learn the concept and math behind key investment performance metrics such as Sharpe Ratio
Learn how to model a buy and hold portfolio
Learn what is rebalancing and how to model a portfolio with periodic rebalancing
Learn how to implement a sector scoring and ranking system
Learn how to incorporate a dynamic hedge into the sector rotation strategy
Know what are the transaction costs involved and how to incorporate them into the model
Understand the concept of leverage and how we can use it to boost our returns
Learn how to incorporate leverage and borrowing costs into the model
Know how to operate the Sector Rotation Model

Requirements

The strategy taught in this course is applied to the US market
A keen learning attitude with an open mind
A basic knowledge in math and statistics is preferable, but not compulsory
A basic knowledge in Excel is preferable, but not compulsory

Description

Do you think professional methods of investing are beyond your reach because it involves the state of the art infrastructure, rocket science, and a huge amount of money?

Have you tried replicating someone else's trading style and method only to end up with drastically different or inconsistent results?

Do you find it difficult to implement investment strategies that you learned because (a) you have no confidence about it, (b) you still don't know how to execute it, and/or © you have no time?

THIS COURSE WILL CHANGE YOUR PERCEPTION ABOUT THE APPROACH TO INVESTING.

We will teach you in-depth a stock investing strategy known as Sector Rotation, from concept to implementation, whose principles are used among hedge fund professionals. While stock sectors generally tread in the same direction as the broader stock market, their individual performance can differ. We will see in this course how to select the right sectors using ETFs to improve investment performance. Then we will learn how to incorporate a natural hedge into the system to make it more resilient against stock market shocks and downturns. The end result is a robust portfolio that is much lower in risk, yet yielding comparable or even higher returns than the broad stock market.

Sector Rotation is a powerful quantitative strategy that is grounded in well-established theory and common sense. There are no chart reading, no thick annual reports, no constant monitoring of market news, and no forecasting.

All investment decisions are driven by the model we will build in this course. The completed model requires less than 5 minutes of your time to update. With a good understanding of the strategy through hands-on learning, this will keep your discipline in check and prevent you from falling prey to emotions during times of market stress. The end result is consistency.

We will build the model up in Excel using inbuilt Excel functions. No programming experience is required. Neither do we need expensive tools or data subscriptions. We will use only free resources.

WHAT YOU WILL LEARN

Why investing purely in a portfolio of stocks is riskier than it looks.
What are the different stock sectors.
What is the concept and rationale behind sector rotation.
How do we pick the correct stock sectors.
What can we do to hedge against stock market downturns.
How do we size our allocation to the sectors and hedge.
How to use critical Excel functions e.g. data lookup, logic operators, math and statistical functions, etc.
What is the intuition and math behind key financial concepts, e.g. returns, volatility, correlation, marginal risk contribution etc, and how to implement them on Excel.
Where and how to get price data.
How to model a buy and hold portfolio.
What is rebalancing and how to model a portfolio with periodic rebalancing.
How to build a scoring system for the sectors.
How to incorporate a dynamic hedge into the model.
How to incorporate transaction costs, borrowing costs, and leverage into the model.
How to calculate key performance metrics and create a performance analytics worksheet for tracking model performance.
How to create a dashboard to extract and display key information for making investment decisions.

WHAT YOU WILL GET

Over 8 hours of lectures developed with more than 15 years of experience in the asset management, hedge fund, and banking industry.
Practice sheets on financial mathematics and excel functions with solutions.
Guided step-by-step model building process complete with templates.
Fully completed sector rotation model file that you can use or improve on.
Free Excel-based resources (from the web) to download price data from yahoo finance in bulk.
VBA scripts to automate the data updating and weight optimization process.

An investment in the right education is one of the best investments one can make. The earlier you start, the better you will be in the future. So take action now and ENROLL IN THIS COURSE!

Who this course is for:

Anyone who is keen to learn a solid investment approach used by hedge fund professionals founded on math and common sense.
Anyone who is interested in generating stable returns with lower risk over the long term.
Anyone who is serious about taking charge of their investment.
This is NOT for people expecting an active trading course or something that will make you a millionaire overnight.