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Invest With An Edge ... Leadership Strategy ... May 6th Update
From review of Ron Rowland's Leadership Strategy my recent Instant Xray analysis reflects that about seventy five percent of my equity allocation is now position within the top five positions of the Strategy. Seems that I am now in the good fast market currents.
I have linked the strategy below for those interested.
Thanks Skeeter, What funds do you use to cover these positions? I have used USMIX as a Midcap Blend index fund as well as USSPX as a Large Cap blend index fund. Others that filter well at my brokerage are: LC Choices:BEQGX, BIGRX, SCDGX, PRFDX, PSPDX, PEIDX, HILVX, JSVAX, TRVLX, TWVLX, LCEIX, YACKX MC Choices: ARGFX, MIDTX, BUFTX, ACMVX
As an aside; Decision Moose, which is also a rotational strategy model portfolio, has been in cash since March 8th. Here are this sites calls over the years. Pretty good results compared to the SP500 as well. decisionmoose
Thank you for your inquiry and for the information on Decision Moose. I have geared my response by item order.
Item One … I did nothing special to achieve this alignment with the strategy it just worked out that way. I do review my Instant Xray reports frequently against the strategy form time-to-time to ensure that I have ample representation to assets that the strategy indicates are the leaders. Should I be light then I’ll make some adjustments. Normally, I like to keep at least a third of my equity allocation position to reflect good representation of the leaders. It was indeed a pleasant surprise to find that I had about 75% weighted towards the top five leaders.
Item Two … As far as mutual fund selections go I try to use funds that are available to me that have a history of being leaders in their respective category. In addition, I use the sleeve approach in which I usually hold at least three funds for each investment sleeve and if one show falter then there the others are there to offer support to the sleeve.
Item Three … Thanks for the link on the Decision Moose site. I use to frequent the Moose until some of his readers were selling his commentary to others and he went to a closed subscription site. I was unaware that he still posted his signals. With that though and his call to a cash like position (3 Mo. Treasuries) … I think that has merit as I have been reducing my equity allocation, at a measured pace, since the first of the year and I have increased my income allocation by adding three short term bond funds to my income sleeve. In addition, here is a link to a Zero Hedge article ... Four Major Warning Signs to Market Investors ... that seem to support the cash position of the Moose's call.
In addition, Morningstar's Valuation Graph is now indicating that the market in general is over bought. I have linked the chart below for your review. Know, however, that the markets can trade at extended levels and overbought conditions for sometime ... It is just that I am not commiting new money at this time and I continue with my equity measured sale procces as they continue their advance upward.
I sincerely believe that the Leadership Strategy along with the use of investment sleeves have helped me stay ahead of my bogey, the Lipper Balanced Index along with keeping up with the many news type articles and sites like the ones I have linked above. I indeed hope you have found this to be helpful.
I’ve never invested in, or even looked too closely at, his funds. I read most of his May 6 commentary, but not all 4,389 words. What I read was enough for me to sense that he overthinks things. In 10 years, per M*, HSGFX has turned $10,000 into $11,266. Does anyone have a fund they’ve owned for 10 years that performed this badly?
Comments
What funds do you use to cover these positions? I have used USMIX as a Midcap Blend index fund as well as USSPX as a Large Cap blend index fund. Others that filter well at my brokerage are:
LC Choices:BEQGX, BIGRX, SCDGX, PRFDX, PSPDX, PEIDX, HILVX, JSVAX, TRVLX, TWVLX, LCEIX, YACKX
MC Choices: ARGFX, MIDTX, BUFTX, ACMVX
As an aside; Decision Moose, which is also a rotational strategy model portfolio, has been in cash since March 8th. Here are this sites calls over the years. Pretty good results compared to the SP500 as well.
decisionmoose
Thank you for your inquiry and for the information on Decision Moose. I have geared my response by item order.
Item One … I did nothing special to achieve this alignment with the strategy it just worked out that way. I do review my Instant Xray reports frequently against the strategy form time-to-time to ensure that I have ample representation to assets that the strategy indicates are the leaders. Should I be light then I’ll make some adjustments. Normally, I like to keep at least a third of my equity allocation position to reflect good representation of the leaders. It was indeed a pleasant surprise to find that I had about 75% weighted towards the top five leaders.
Item Two … As far as mutual fund selections go I try to use funds that are available to me that have a history of being leaders in their respective category. In addition, I use the sleeve approach in which I usually hold at least three funds for each investment sleeve and if one show falter then there the others are there to offer support to the sleeve.
Item Three … Thanks for the link on the Decision Moose site. I use to frequent the Moose until some of his readers were selling his commentary to others and he went to a closed subscription site. I was unaware that he still posted his signals. With that though and his call to a cash like position (3 Mo. Treasuries) … I think that has merit as I have been reducing my equity allocation, at a measured pace, since the first of the year and I have increased my income allocation by adding three short term bond funds to my income sleeve. In addition, here is a link to a Zero Hedge article ... Four Major Warning Signs to Market Investors ... that seem to support the cash position of the Moose's call.
http://www.zerohedge.com/contributed/2013-05-07/four-major-warning-signs-market-investors
In addition, Morningstar's Valuation Graph is now indicating that the market in general is over bought. I have linked the chart below for your review. Know, however, that the markets can trade at extended levels and overbought conditions for sometime ... It is just that I am not commiting new money at this time and I continue with my equity measured sale procces as they continue their advance upward.
http://www.morningstar.com/cover/market-fair-value-graph.aspx
I sincerely believe that the Leadership Strategy along with the use of investment sleeves have helped me stay ahead of my bogey, the Lipper Balanced Index along with keeping up with the many news type articles and sites like the ones I have linked above. I indeed hope you have found this to be helpful.
Cordially,
Skeeter