Each month I share the monthly performance of the Passive Portfolio and Dual Momentum Strategy. I also share the Dual Momentum pick for the current month based on my relative and absolute momentum criteria using my favourite Canadian-listed ETFs.
I will no longer be tracking a regular Canadian Couch Potato-esque portfolios. There are two reasons for this:
- Pretty much every Canadian finance blog alludes to the ongoing performance of this type of strategy; while there's nothing wrong with being a Spud, at The Rich Moose Blog we intend to be different; and
- Thanks to some awesome new ETFs from Vanguard, there is no longer any benefit to running your own balanced strategy using multiple ETFs! (Blog post coming on this.)
Instead, on The Rich Moose Blog, we're going to turn up the heat while protecting the downside risks! We're going to continue tracking our Dual Momentum Strategy and introduce a suite of leveraged strategies.
I'll be doing some posts on leveraged strategies this month and begin updating at the end of February.
This Month's Update
Dual Momentum Strategy (RM Style)
See our version of Dual Momentum's performance for 2017 by visiting the Portfolios page.
Last month's recommendation XEF.TO went up 2.83% for the month.
Current recommendation: XEF.TO (no change from last month)
Dual Momentum is a strict, rule-based investment system. Even after the market drop of the past week or so, XEF.TO is still up significantly in the past 12 months and up in the past 6 months.
It's important to give full credit to Gary Antonacci for this simple but effective investment strategy. Check out his site—Optimal Momentum—and read his book to learn all about this strategy before implementing it for your own portfolio.
I am confident that Dual Momentum is a great strategy that's likely to outperform a lazy portfolio strategy on a risk-adjusted basis. If you're afraid of big drawdowns, this strategy may be right for you. Every self-directed investor should give this strategy serious consideration.
When determining our monthly position, we consider the past performance of just three eligible holdings: XUU.TO, XEF.TO, VSB.TO. The best performer based on specific criteria becomes the only holding for the next month.
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