by Monty Pelerin
Monty Pelerin’s World
This post provides more information on the dynamic momentum system (DMS) developed to find ETFs with characteristics that suggest higher than average future returns.
The future is obviously impossible to predict accurately, although proper evaluation of relevant conditions may enhance the odds of doing so. The DMO presented below is an approach that appears promising.
As reported in a prior post, from 2007 forward until the present, a passive investment (buy and hold) in the S&P 500 was compared to the results from the dynamic momentum system:
From January 2007 through the first six months of 2016, a $10,000 investment grew to over $90,000. In contrast, the S&P grew over the same period to just under $15,000.