Beware Morningstar Myths: The Truth Can Save You Big Bucks


We believe that Morningstar’s size and stranglehold on the rating industry do not serve investors’ best interests. Receive in-depth reports on 10 funds that we think Morningstar’s backward-looking ratings have dead wrong.

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Roadmap to the Best & Worst Sectors for Funds 2Q12


Only one sector, Consumer Staples, earns my Attractive rating. See Figure 1 for my ranking of all ten sectors. My sector ratings are based on the aggregation of my fund ratings for every ETF and mutual fund in each each sector.

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Microsoft (MSFT): Very Attractive Rating — for Ask Matt Readers

MSFT gets my best rating because the company’s ROIC, at 72%, ranks 8th in the S&P 500 while its stock price (~$31.52/share) implies the company’s profits will permanently decline by about 20%. High profitability and low valuation create excellent risk/reward in a stock. Here is my free report on MSFT.

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New Constructs’ Offerings: Website Overview

Here is a quick guide to the basics of the New Constructs website.

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“Predictive” ETF & Mutual Fund Rating Methodology


QUESTION: Why should fund investors rely on backward-looking NAV trends?
ANSWER: They should not.

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Portfolio Management Rating: Methodology for Predictive Fund Ratings


The Portfolio Management Rating of a fund is based on the aggregated ratings of the securities it holds as well as its overall Asset Allocation. When analyzing equity funds, we use New Con­structs’ stock rat­ings, which are reg­u­larly fea­tured as among the best by Barron’s over the past three years.

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