Investment professionals, do you have a consistent, reliable, go-to process for reading the market and adjusting client portfolios to current changes and trends? I’m not speaking of forecasting here! Forecasting is a futile practice fraught with the corruptibility of: emotion, opinion, and bias. No, I am speaking of an approach which allows you to get … More Smart Indexing – a Thermostat & Thermometer
What is the long term when it comes to investing? It seems everyone has their own idea about this. For instance if you caught this article today it would appear that 9 years is long enough. The problem with assumptions like this, are that it ignores the very real impact that vicious market cycles have on … More What is Long Term?
The case for trend following, momentum, or tactical allocations, as they are know, is proving itself to be a valuable component for any portfolio. The research is vast, see here and here, and continues to grow each year. Here at Spectrum QR, we thought we would added our voice to the discussion by continuing to … More The Case for Tactical
INVESTING IN RISKY ASSETS “…2008 was a devastating year for buy and hold investors. The classic barometer of stocks, the S&P 500 Index, declined 36.77%. The normal benefits of diversification disappeared as many non-correlated asset classes experienced large declines simultaneously. Commodities, REITs, and foreign stock indices all suffered losses over 35%. “..The unfortunate mathematics of … More A Quantitative Approach to Tactical Asset Allocation
Did you know that from 2000 – 2016 the average annual return for the S&P 500 was 4.11%? Stunning right! Why? Because two of the largest bear markets in the last 86 years took place over the past 16. We can all agree that bear markets are hated, hard, and harmful, and I contend that … More Bear Market Problems
This white paper by Dorsey Wright is one of my favorite studies run on over 100 ETF’s tested on over 100 trials. I think you will agree, it continues to reinforce the case for Trend Following. Tactical Asset Allocation Using Relative Strength Enjoy! Andrew –
“…The addition of a trend-following parameter to dynamically hedge the portfolio decreases both volatility and drawdown….” Meb Faber https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1585517&rec=1&srcabs=962461&alg=1&pos=1 At SQR, our model portfolios are built on the practice and discipline of trend following and relative strength. Investment professionals, if you are looking to enhance risk adjusted returns – while capturing additional revenue – then … More Relative Strength Strategies For Investing…