When To Sell

June 6, 2011

…is the topic of this article from CNN Money.  The article suggests three criteria, which I interpret as:

1) eliminate cognitive biases

2) forget buy-and-hold, and

3) have a set of rules to guide your decisions.

CNN Money labels them differently, but I think that’s the gist.  Given that perspective, is it any wonder that we use a systematic investment process?  Selling, at least for retail investors, always seems to be more difficult than buying, so a systematic process can be a life-saver.

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Weekly RS Recap

June 6, 2011

The table below shows the performance of a universe of mid and large cap U.S. equities, broken down by relative strength decile and quartile and then compared to the universe return.  Those at the top of the ranks are those stocks which have the best intermediate-term relative strength.  Relative strength strategies buy securities that have strong intermediate-term relative strength and hold them as long as they remain strong.

Last week’s performance (5/30/11 – 6/3/11) is as follows:

There were nearly identical declines across all relative strength quartiles last week.

With the exception of Utilities and Healthcare, all sectors had roughly the same declines last week as well.

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