SVA Charts

A portfolio manager could have purchased shares of Boeing at the beginning of the bull market in 1982, at an adjusted price of approximately $2, holding them through to the June 2002 $42 level in the example above. This would have provided a compound rate of return of approximately +17% plus an average dividend yield of approximately 1%, for a better total return than many mutual funds.

The key to this fine rate of return is clearly the choice of starting date. The same manager may not have bought until May of 1990. At that time the shares sold at around $20 and the compound return since that time would have been +7% on capital plus a 1% dividend yield, for a less than scintillating +8% during the bull market of the 1990s.

Trading decisions based on this Structural Valuation Chart could have netted the portfolio manager a substantially different return using the natural market signals that these charts produce, no matter when the manager started his investment program.

This example of Boeing Co. shows the Positive and Negative Transitions and Inflections that offered clear signals of the need to change strategy. In each case the price movement was quite significant following the SVA® signal and the improvement in the pattern of investment returns, even adjusted for taxes, would have been very large.