THE RELATIVE STRENGTH CONCEPT
Unique & Comprehensive Analysis
We use a strict set of investment rules to guide every investment that we make. Our foundation is based on the process of Relative Strength.
This history of Relative Strength dates back to the early 1930’s.
The calculation is simply done by dividing the price of one investment by the price of another and then multiplying that number by 100. Because of this simple equation, the concept of Relative Strength can be applied across the entire spectrum of financial products.
In sum, Relative Strength can help to answer the broad asset class allocation questions related to bonds, stock, sector rotation and permit you to pinpoint specific comparisons. For example, whether crude oil is outperforming copper.
All of our portfolios use a variation of the following rules for investment selection:
- Assemble Investment Choices.
- Determine Strongest Investments.
- Invest top Strongest Scores.
- Market Risk Analysis: Money Market Percentile Rank.
- Rebalance Quarterly Plus a Month. (February, May, August and November)