Dorsey Wright Money Management

Portfolio strategy, reits, etf investing, long/short equity
Dorsey Wright Money Management
Portfolio strategy, REITs, ETF investing, long/short equity
Contributor since: 2011
Company: Dorsey Wright Money Management
Thanks for your comments. It's true that we don't have any say in how the editors tag the article. And it was originally published on a site primarily read by advisors rather than individual investors. Yet I think the point is somewhat universal and something that all of us who hope to retire (or are retired) want to know--what kind of spending rule will work in retirement?
I agree it is too early to know for sure. That's why I wrote "it's possible we won't have a recession at all." On the other hand, it's worth noting that the markets are responding as they typically would in an expanding economy. Bottom line: forecasts are tough to implement in an investment policy, even if they prove to be ultimately right. We'll just have to see how it all washes out.
The green arrows correspond with the dates that the NYSE high-low index reversed from below 40%.
We show performance data on various relative strength strategies on our blog constantly. systematicrelativestre....
You can follow us on our actual blog, systematicrelativestre....
SeekingAlpha picks and chooses which articles they publish from us. Skip the middle man and go straight to the source!
Thanks for reading.
If you look at the chart, you can see that during some periods of time, less than 20% of the HighRS universe is trading above its 50-day MA.
These periods of HighRS under-performance are periodic and should be expected. No strategy is going to be able to outperform all the time (if HighRS always outperformed, the chart would be a horizontal line at the top of chart).
As far as trying to time when you should be invested in HighRS based on a moving average indicator, please read this post:
Come to our blog for more detailed posts. Thanks for reading!
we wrote about this today as well...