Dorsey Wright Money Management Relative Strength is the cornerstone of our investment process. High relative strength stocks have historically provided high returns, but they often do not correlate very well with the broad market. For that reason, high relative strength stocks frequently appear to act like a separate asset class. From an ...More
asset allocation perspective, there is significant value in a high-return asset class that is uncorrelated with most other stocks and bonds. Non-correlated performance can help smooth out the returns in a diversified portfolio.