Post by Admin on Jul 4, 2024 17:06:55 GMT -5
Why does momentum investing work?
I have been doing it since 2000. The idea I developed was based on
1) Selecting up to 5 funds in the best performing categories for 3-6 months, then looking at 1-2 years, and then selecting the best risk/reward funds within those categories.
2) Every 4–6 months, do the above again.
This simple concept makes sure you are in the right place. Many times, a leading category can be hot for years.
Regardless, you can do the above for any category, even if it's not a leading one, if you are looking for a new fund.
Since I started to invest in 1995, I have seen the following good categories; pay attention to the fact that in the last 30 years we had 3 main cycles:
1995-2000: US LC tilting growth.
2000-2010: US Value+SC, and international
2010-2024: US LC tilting growth.
If you invested in the above, you did very well...and I did. This is not getting rich quick; just being in the right categories and funds is better.
Several of the funds I owned have been great for years. For more details and fund selection, you can read (fd1000.freeforums.net/thread/3/portfolio-performance-over-years).
I have been doing it since 2000. The idea I developed was based on
1) Selecting up to 5 funds in the best performing categories for 3-6 months, then looking at 1-2 years, and then selecting the best risk/reward funds within those categories.
2) Every 4–6 months, do the above again.
This simple concept makes sure you are in the right place. Many times, a leading category can be hot for years.
Regardless, you can do the above for any category, even if it's not a leading one, if you are looking for a new fund.
Since I started to invest in 1995, I have seen the following good categories; pay attention to the fact that in the last 30 years we had 3 main cycles:
1995-2000: US LC tilting growth.
2000-2010: US Value+SC, and international
2010-2024: US LC tilting growth.
If you invested in the above, you did very well...and I did. This is not getting rich quick; just being in the right categories and funds is better.
Several of the funds I owned have been great for years. For more details and fund selection, you can read (fd1000.freeforums.net/thread/3/portfolio-performance-over-years).