Category Archives: stocks

Verizon CEO: Go90 ‘Over-Hyped,’ But ‘Expectations Are Realistic’

Verizon Communications ‘ ( VZ ) Go90 mobile video service was “over-hyped,” Verizon CEO Lowell McAdam said at an investor conference Tuesday. McAdam downplayed expectations for Go90, speaking at the JPMorgan financial conference in Boston. “I think maybe it did get a little over-hyped, and I’m sure we contributed to that to a certain extent,” McAdam said. “We didn’t believe it was going to move the needle on a $130 billion revenue stream overnight. It’s one of those things you have to work into.” Verizon has not disclosed how many subscribers it has for the ad-supported Go90 service, which targets millennials (ages 18 to 34) and “Gen Zers” (teens). Launched in September, Go90 provides a mix of original Web TV series, live sports, concert streaming, prime-time TV and other offerings. Verizon’s Go90 is usually lumped with emerging over-the-top (OTT) video services, such as  Dish Network ‘s ( DISH ) Sling, but the mobile app also competes for millennial attention with the likes of Alphabet ( GOOGL ) parent Google’s YouTube,  Facebook ( FB ), Instagram and Snapchat. “We have seen enough success to make us excited about continuing to work it. We’re on pace,” McAdam said. “Bottom line is that Go90 is in a good spot from our perspective. We’re going to continue to pursue it. But our expectations are realistic.” At an analyst meeting in April, Verizon executives indicated they might expand Go90 to multiple video streaming platforms this year. Verizon stock was up a fraction, near 49, in early trading in the stock market today .

Day-Of-Month Effect On A Bond/Equity Portfolio

In this post we will: Take a look at a simple, momentum based, monthly rebalanced Equity/Bond portfolio. Search for what has been the optimal dates in the month to rebalance such a portfolio. Each month we allocate to two ETFs: SPY and TLT . If SPY has outperformed TLT we rebalance to 60% SPY – 40% TLT. If TLT has outperformed SPY we rebalance to 20% SPY – 80% TLT. For the first run we will re-balance on the first of the month and close at the last day of the month. Click to enlarge source: sanzprophet.com Now we will try different combinations of entry and exit days. We will try to purchase x days before or after the month and instead of exiting at the end of the month we will exit after y days. Click to enlarge source: sanzprophet.com Click to enlarge source: sanzprophet.com The top chart is optimized for Net Profit while the second one for annual return/max drawdown. They are similar in this case, but we will use the second one. According to the chart the best combinations have been: Buy 3-7 days after the month and hold for around 10-18 days. The BuyDayRefToMonth variable refers to when we buy relative to the turn of the month. For example -5 means we buy five days after the turn of the month (i.e., the 6th trading day). +5 means we buy 5 days before the month ends. The BarsnStop variable refers to how many days later we sell the positions. Looking at the charts more closely we see that buying after (not before) the 1st of the month gives consistently better results when set between 2 and 7 days. Click to enlarge source: sanzprophet.com How many days we hold the investment is less obvious and seems to work across the given range: Click to enlarge source: sanzprophet.com Let’s run this again but now only for 2012-May 2016: Click to enlarge source: sanzprophet.com Similar results. The only difference is that the holding times are shorter. Let’s now input the optimized numbers and run the backtest. Obviously we will get something that looks good since it has been fit to the data. We buy 6 days after the month and hold 10 trading days. Click to enlarge source: sanzprophet.com Conclusion: There are many variables that affect how we run a dynamic Equity/Bond portfolio. We optimized only two of them, namely when to rebalance relative to the turn of the month and how many days to hold the investment. In terms of entry it was better to wait 3-6 days after the month changes to enter the trade. When it comes to this bond/equity portfolio, rebalancing late is better. Disclosure: I am/we are long SPY, TLT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.