We’ve written about this paper by Mebane Faber already, but here is a link to a review of his work from CXO Advisory. Mr. Faber’s paper is about industry and asset class rotation, and CXO’s conclusion is:
In summary, evidence from simple tests indicates that the momentum anomaly is substantial and persistent over long periods for industries/asset classes on a gross return basis.
We are big fans of the words “substantial” and “persistent.”
