I had a request to run the 10 Stock Growth Portfolio settings on some of key international markets we track.
It was interesting to see that this stacked up well in the US and Canada. The US market has had a significant run since 2009 – which in turn helped drive the parameters that have worked so well in Australia.
For Canada – the Canadian market is somewhat similar to Australia – with a good sprinkling of mining stocks. In terms of total size of the world stock market – the USA accounts for 53.2% , Canada at 2.9% and Australia accounting for 2.5% as of 2016 (https://www.bloomberg.com/view/articles/2017-03-17/think-global-to-avoid-shrinking-u-s-stock-market)
I got to work testing the exact settings for our 10 Stock Growth Portfolio against several countries. Very interesting. The USA and Canada worked fairly well applying the same settings.
I made one variation to the 10 Stock Portfolio – it has not affected any of the results or back-tests in Australia – but it was prudent to ensure that I kept the parameters consistent – I changed the parameter relating to finding stocks no more than $3. Originally I had one of the line settings in UniSearch as: Stock Price (Actual) < $3. I have changed this to note: Stock Price (Split Adjusted) <$3.
It is always best to work with a split price adjustment. If stock splits take place – this can cause results to be inaccurate since an actual price is not adjusted for the stock split until it has taken place and not adjusted prior.
In the UniSearch settings, I changed the parameters to read as follows:
To see the international BackTests, please CLICK HERE