Best Ways to Use Momentum

There are many ways to use momentum. Some are better than others. Let us look at some of the best approaches. Stock Momentum In 2018, Dimensional Fund Advisors (DFA) issued a report on the performance of all public momentum funds from June 2003 through 2017. Only one fund had outperformed the Russell 3000 broad market…

Seasonality Factor

Our first look at calendar influences was in analyzing the best time during the month to execute dual momentum trades. Studies here, here, and here show that stocks perform best early in the month. This is when institutional investors make changes to their portfolios. Prices then are most representative of their true value. Here are the Sharpe and…

Whither Fragility? Dual Momentum GEM

Corey Hoffstein of Newfound Research recently wrote an article called, “Fragility Case Study: Dual Momentum GEM.” Corey starts out by saying my dual momentum approach is the strategy he sees implemented the most among do-it-yourself tactical investors. Corey then said several investors bemoaned that GEM kept them invested in the stock market during the last…

Momentum Solutions for Retirement

by Matthew Richardson, JD, Ph.D. As the surge of boomer retirements continues, commentators have given new thought to what safe withdrawal rates are for retirement accounts.  The topic is especially significant given two additional factors. First, retirement balances are shockingly low for boomers (Ghilarducci 2015)[1].   Second, market fundamentals do not suggest that either bonds or…