No. of Recommendations: 4
Define beating the market? CAGR DD SHARPE?
My model has done very well. Covid DD ~18% and since then matched SP. Since 2012 it's about 13% CAGR. BUT I think of it as a comprehensive stock selection. In other words, it replaces having to think about large cap small cap mid cap growth or value. It just picks stocks with factors I deem important.
If I weren't using that model I would use dual momentum with large, mid and small cap growth and value ETFs and select top 2 or 3 with short look back. I just ran it on port visualizer
Portfolio Initial Balance Final Balance CAGR Stdev Best Year Worst Year Max. Drawdown Sharpe Ratio Sortino Ratio Market Correlation
Dual Momentum Model $10,000 $56,464 9.41% 11.94% 35.26% -13.04% -20.56% 0.70 1.14 0.66
Equal Weight Portfolio $10,000 $55,845 9.35% 17.20% 34.47% -36.53% -51.18% 0.53 0.77 0.98
Vanguard 500 Index Investor $10,000 $56,985 9.46% 14.93% 32.18% -37.02% -50.97% 0.59 0.87 1.00
As I tell my kids, 'sometimes good is good enough.' Perfection has a cost. ;-)
