S&P STARS Portfolio Celebrates 15th Year Selecting High Quality Stocks 'Buy List' Outperforms S&P 500 Eleven Times
NEW YORK, Jan. 9 /PRNewswire-FirstCall/ -- Standard & Poor's, a global leader in financial data and investment analysis, today announced that its model portfolio of stocks ranked 5-STARS (strong buy) ended the year ahead of the S&P 500, outperforming the well known index for the eleventh time since its inception 15 years ago. Although capital appreciation for both 5-STARS* and the S&P 500 declined in 2001 (-10.9% and -13.0 % respectively), 5-STARS measures favorably against the year's -21.1 % performance for the NASDAQ Composite and -11.0% for the Dow Jones Index Composite, demonstrating, once again, its ability to minimize losses, if not prevail, in a difficult investment climate. Standard & Poor's Stock Appreciation Ranking System (STARS) was introduced on December 31, 1986 and reflects the opinions of Standard & Poor's equity analysts on the price appreciation potential of approximately 1,100 stocks for the next 6-12 month period. Rankings range from 5-STARS (strong buy) to 1-STAR (sell). STARS are currently used as the basis for a number of investment vehicles sold by third-party brokerage firms and may be followed in both Standard & Poor's weekly investment newsletter, The Outlook, as well as MarketScope, Standard & Poor's real-time investment news and advisory service for brokers and investment managers. At any one time, there are approximately 100 stocks in the S&P 5-STARS Portfolio. "Since inception, STARS' performance has been spectacular. Stocks ranked as 4-STARS and 5-STARS have soundly beaten the performance of the S&P 500 Index for the past 1, 3, 5, 10 and 15 year periods." said Kenneth Shea, Managing Director, Equity Research, Standard & Poor's. "If, for example, an investor had placed $10,000 in an equal-weighted portfolio comprised of all Standard & Poor's 5-STARS stocks in 1986 and continued to follow Standard & Poor's 5-STAR recommendations over the next fifteen years, that investment would have been worth $125,200 at the end of 2001. The same initial investment tied to the to the S&P 500 over the same period would have been worth $47,408." Demonstrating the ability of Standard & Poor's analysts also to warn investors about potentially poorly performing securities, stocks which the firm has labeled as 1-STARS and 2-STARS (sell and avoid) have, as a group, significantly under-performed the S&P 500 over the past 5, 10 and 15 years. Of the many recommendations Standard & Poor's analysts made on approximately 1,100 equities in 2001, over 10% were clearly communicated as stocks to "sell" or "avoid", a very high percentage compared to most Wall Street research firms. Standard & Poor's is not engaged in any underwriting activities and is one of the few truly independent research houses on Wall Street. In addition, Standard & Poor's Equity Research department operates independently of the S&P Index Committee that creates and maintains the S&P 500 and Standard & Poor's other proprietary equity indices. Currently, more than $8 billion in assets are managed in portfolios based on Standard & Poor's proprietary, non-index strategies, rankings and recommendations. Standard & Poor's investment advice is widely used by brokerage firms, mutual funds, insurance companies, retirement plans, financial planners, and other financial services professionals. Standard & Poor's Investment Advisory Services leverages the strengths of the entire Standard & Poor's organization to offer the financial community objective, analytical, disciplined advice. Standard & Poor's, a division of The McGraw-Hill Companies (NYSE: MHP), provides independent financial information, analytical services, and credit ratings to the world's financial markets. Among the company's many products are the S&P 1200, the premier global equity performance benchmark, the S&P 500, the premier U.S. portfolio index, and credit ratings on more than 220,000 securities and funds worldwide. With more than 5,000 employees located in 18 countries, Standard & Poor's is an integral part of the global financial infrastructure. For more information, visit www.standardandpoors.com. *It should not be assumed that recommendations made in the future will be profitable or will equal past performance. The above performance calculations for STARS do not take into account reinvestment of dividends, capital gains taxes or brokers commissions and fees. A complete list of STARS recommendations made in the last year is available from Standard & Poor's upon request. STARS are published by Standard & Poor's Equity Research department, which operates independently from, and has no access to information obtained by, Standard & Poor's Ratings Services, which may in the course of its operations obtain access to confidential information. MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X94018529RELATED LINKS
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