Jan 07, 2019
Channel | Stocks
A classic argument you hear is that the Nikkei (which went exponential in the 1980's) has been dead for a generation. Yes, but you could say the same thing about lots of securities. Here is EWJ (Japan fund) -- flat this century vs a very simple tactical strategy... and Micron (MU), which is actually -16% this century. If the S&P 500 goes into a wide trading range with low Buy & Hold returns, tactical asset allocation can still work. Even when there is no wind ON AVERAGE over the long-run, tactical investing can augment returns with the intermediate-term gusts.
Note that in these examples the backtest is extremely conservative in that it assumes you never earn any return when out of the stock, which can be lengthy periods of time. In reality a bond fund or similar relatively low risk yield fund is very easy to access. Use our Ratio Moving Average backtest and check the results on those. Ratio Moving Average Backtest Module (Members link)
ETFreplay Summary Page -- Individual Stocks
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