Two Rides the Public Missed…

May 7, 2012

Mark Twain once said, “A cat who sits on a hot stove will never sit on a hot stove again. But, he won’t sit on a cold stove, either.”  Surely, that applies to investors who have gone through a severe bear market, like 1973-74 or 2008.

Source: The Leuthold Group

Without an investment process that systematically allocates to where the action is, investors may be psychologically incapable of making much money for years to come.

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Weekly RS Recap

May 7, 2012

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 (4/30/12 – 5/4/12) is as follows:

High relative strength stocks performed in line with the universe last week.

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