Prospero’s proprietary long-term signals are meant to predict the performance of a stock or ETF over the next one to two years. The score helps compare them respective of other stocks, with ratings of 80 and above considered high and 20 and below considered low.

Unless you are a pro, long-term investing is the safest form of investment. Given the last Buying and holding a diversified portfolio of strong stocks for years vs weeks or even months is, historically and unquestionably, the safest and best way to see the highest returns. Conversely, short-term trading, or trying to profit from rapid price fluctuations, is a high-risk, high-reward strategy that can be just as likely to earn significant gains as it to incur substantial losses. While maintenance is important to keep up with market shifts, generally speaking, a well diversified portfolio will weather the storms and help to grow wealth.

Prospero.ai's Long term signals include:

• Upside Breakout - Rates stocks on their potential to see a big increase in their price.
• Downside Breakout - Rates stocks on their potential to see a big decrease in their price.
• Profitability - Rates stocks on their potential for strong financial performance.
• Market Similarity - Rates stocks on how closely the mirror the S&P 500.
• Growth - Rates a stock by its potential for increases in its revenue or size.

The best possible combination of signals for long-term investments are stocks with low Downside Breakout and high Upside Breakout, Profitability, and Growth Ratings. While investing always carries risk, this combination of signals can help filter investments that appear to carry the least amount of it.

Using Market Similarity, which tracks how closely a stock’s performance mirrors the movement of the S&P 500 index, is tricky for long-term investments. Market Similarity does not distinguish between the direction of a stock’s price (up or down) – just how close the stock’s price tracks to the index. This means a stock could be rated low Market Similarity and still outperform the S&P 500 at a time when the market is increasing. It could also miss out on that boom or worse crash harder during a down market. These investments carry more risk. In times when the S&P 500 is decreasing, a lower Market Similarity is likely to be more desirable for long-term investments.