CHAPTER 8
GLOBAL EQUITIES MOMENTUM
There is a tide in the affairs of men which, when taken at the flood, leads to fortune.
—William Shakespeare
WE HAVE SEEN HOW MOMENTUM evolved, what assets are best to include in a momentum-based model, and what we mean by relative, absolute, and dual momentum. We have also identified the tools and criteria we need for evaluating our results. We are ready now to create an integrated model that transforms momentum concepts into a real-world experience.
Based on the past success and high-risk premium of equities, we will anchor our investment portfolio in U.S. stocks and switch into non-U.S. stocks in accordance with relative strength momentum. We will hold bonds (short to intermediate term) only when ...
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