Value & Momentum Strategy

It’s  discussed in an article written by Kevin Truitt for the July 2013 issue of AAII Journal—a strategy displayed in just about all of the Yahoo charts mentioned in my blog posts, as when the 20-day moving average is riding above both the 50-day and 100-day moving averages or the 50-day m.a. is above both the 100-day and the 200-day.

Kevin includes two charts with his article. The first shows the moving-average lines of three strategies from the mid-1970s. The Value & Momentum moving average rides well atop the momentum m.a. and surprisingly higher than the value m.a.

The second chart shows compares the increasing value of a $100,000 Value & Momentum portfolio with SPY (the S&P500 ETF) since May 2011 into May 2013: V&M to about $155,000 and SPY to about $125,000.

Also, Kevin discusses good ways to assess value signals as well as good ways to assess momentum signals.

Among other noteworthy articles in the same issue of AAII Journal: “Never Chase High Yield,” by Donald Cassidy. He gets into the specifics of income-focused securities, including my favorites, REITs and MLPs.

And now a fun moment:

A video of two of my favorite funny men, Dean Martin and Buddy Hacket.