Class OutPerformance Investment Strategy

Class OutPerformance Investment Strategy

(COP Strategy)

[NOTICE; I am contemplating dropping this web site and using email distribution only. If you are interested in the email distribution please let me know through the below email address]

A dynamic asset allocation strategy (for the serious do it yourself investor) to invest in the top asset classes from a monthly ranking report of eighty asset classes (domestic and foreign).

The ranking is based on the relative momentum of asset class returns. An asset class research model, using 17 years of monthly data for 50 asset classes, produced the following returns:

Investment Assets	Annual Total Return %*	Standard Deviation %*	15-Year* Return %
Investing in the Top 15 Ranked Asset Classes	17.97 16.30*	11.45 8.35*	1193**
Investing in the Top 8 Ranked Asset Classes	19.48 18.00*	14.07 10.2*	1444**
Investing in the S&P 500 via SPY	11.38	13.96	504

*Over 15 years from 1/1/91 through 1/1/06 **Asset class investment made starting the month after momentum measurement made. ***Starting with 15 days delay after momentum measurement made.

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The COP strategy model, in the first case above, showed a 70% greater annual return than the S&P500 (17.97% versus 11.38%) which compounds over 15 years to 237% of the S&P’s return. In the two above cases the investor has a choice of a lower volatility than the S&P or about the same volatility as the S&P with a much greater return. This is neither a market timing strategy nor one that predicts markets. Rather, it is dynamic asset allocation based on the well researched fact that 90% of a portfolio's returns are driven by “asset class” selection rather than individual asset selection. The COP Research Model only used plain vanilla index funds for investment in all classes. Could you do better?

This site offers a disciplined, well-documented investment strategy, fully supported by active strategy research and driven by a monthly report, COP Monthly Trend Report, to select your classes. This site is for professional or serious novice investors who want to follow a proven strategy with discipline and efficient use of time. The strategy consists of:

Select asset classes from about 80 asset classes based on the relative short term performance, or momentum. Only 10% of a portfolio’s return comes from selection of investments within an asset class, or timing, etc. See “Trend Report” for this month’s rankings and “E-Letter” for the cover letter.

Funds (Mutual and ETF) are available for all classes to implement the portfolio. Top performing funds are chosen after choosing asset classes.

Monthly review of selections, change if necessary (The relative outperformance of an asset class changes more slowly than does absolute performance and the market as a whole)

This strategy does not avoid sudden, serious market down turns, but the latest research using the COP Research Model does offer great help on managing through such events.

The strategy and the research behind the strategy are documented in an attached 40 page paper “Strategy Paper”. The COP Research Model has 17 years of monthly performance data for 50 different asset classes and can be configured by a control page to run an endless number of research cases. See “Appendix D” for 15 year graphs of the cases in the table above. The COP monthly “Trend Report” provides 8 to 10 day old performance data and ratings for about 80 different asset classes. Many funds (ETF and Mutual) exist for all 80 classes.

So, are you tired of scrounging for investment insight with little confidence in what you find? Is your broker your friend? The investment industry likes the terms “buy-side” and “sell-side.” Who is being sold? Do you get investment ideas from someone trying to sell services or magazines? If you believe that good stock picking is more important than asset class selection first and/or you can do better with stocks than funds – you have been sold. If you believe that your broker/investment manager is trained to be competent at selection of stocks or funds of any kind, you have been sold. Do you follow a disciplined strategy and methodology or is it ad-hoc?

The purpose of this site is to provide a center for an internet based, virtual, collaborative market-strategy research group. If you have programming skills, access to data bases or other value to contribute and are interested, please indicate in an email. All other email comments are welcome. This site is for an exchange of ideas; there is nothing for sale here. Jump in.

Note: past performance does not predict future performance, and, the performance reported herein is from a research model, not a real portfolio (I believe my results are close and did substantially outperform the S&P – see the paper). This information is only posted for coordination amongst family and a few close friends who follow this strategy and have their own source data subscriptions to avoid my paying of distribution fees for this site.

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