Tuesday, November 17, 2015

Momentum Versus Mean Reversion Update....11.17.15

This week's update of the M6 momentum versus mean reversion models shows a dramatic difference in both total risk exposure and net returns.
Which one is best?  Depends on your risk comfort level and long term investment goals.
My tactic.....rotate into the strongest model based on whether the technicals are in or out of paradigm.
Note: we are currently in paradigm with the MR model...