I'm continuing to focus on refining the new Model AB components for a 2013 defensive portfolio.
The problem, of course, is that past results are absolutely no guarantee of future returns.
The best we can do then is build a historically correlated component mix and prepare to go to cash when the model dynamics reach certain thresholds of weakness...hence our RSQ and P6 indicators.
Keeping with the mission statement of Mosaic, our next tasks include:
1. Refining the AB portfolio allocations using these components.
2. Using these and other components to build several shorter term trading models using the T2 and/or VTV momentum approach.