The US Momentum Strategy is one of four US-based investment strategies, which involve rebalancing a portfolio of top momentum stocks once a month. Through buying the strongest stocks within an index, we invest in those with a high potential for future performance while avoiding stocks currently in downtrends. Momentum investing is a strategy that benefits from price trends in the stock market. The concept of momentum is not new. The ‘momentum effect’ states that an investor can use the historical price performance of a stock as a guide to its future performance. In short, a security that is experiencing a positive trend will continue to do so, at least over the short term. Following the last trading day of each month, our model ranks the entire list of S&P 500 companies using our proprietary measure of momentum. We then hold the top 10 stocks at equal weighting, before repeating the process each month. The stocks that drop from the top-ranked list are sold and replaced by the new stocks, now within the top-ranked list.
The US Momentum strategy is one of our highest returning portfolios for investors who are willing to look outside of Australia’s borders.
*Performance data for the US Momentum strategy relies on backtested data prior to 1 Apr 2016 and live results post that date. **Past performance is no guarantee to future performance. ^Rivkin advise you not to rely solely on back tested data or statistics in order to make any trading decisions. We suggest you contact our relationship managers to arrange access to our live membership site on trial basis. Here you will be able to view all actual historical trading recommendations (and results) provided to clients over the last 20 years which can be used to inform your own assessment of the potential returns based on your individual situation.
The higher than average number of trades per year is necessary to achieve the market beating returns.
*Performance data for the US Momentum strategy relies on backtested data prior to 1 Apr 2016 and live results post that date. **Past performance is no guarantee to future performance
|Item||ASX Value||ASX Blue Chips||ASX Momentum||ASX Income||ASX Event||US Momentum||US Value||US Long/Short||FX & Liquid Market|
|Average No. of Trades Per Year||29||19||24||2||10||48||46||36||120|
|% Positive Months||68%||66%||67%||74%||89%||60%||61%||59%||59%|
|Average Monthly Return||1.38%||0.97%||2.12%||0.22%||0.12%||1.59%||1.24%||1.09%||1.02%|
US Momentum Trades
|Status||Stock Name||Code||Entry Month||Entry Price||Distributions Paid||Exit Month||Exit Price||Gross Return (%)|
|Closed||Eli Lilly and Company||LLY||Mar-19||$129.84||$0.00||Apr-19||$130.73||0.7%|
|Closed||Merck & Co||MRK||Mar-19||$82.00||$0.00||Apr-19||$83.81||2.2%|
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