For your portfolio to outperform the market, it must comprise stocks that are outperforming the market. Relative strength, comparative technical analysis of one or a group of securities against one another over time, has always been a cornerstone of our investment process. We believe it is the most robust and adaptable method of security analysis ever developed. Despite the popular notion that such a simplistic approach to security analysis can never beat the market, relative strength has been shown time and time again by portfolio managers and academic studies to be a viable methodology for outperforming the market over time.
By building a portfolio of strong relative strength stocks, the investor is allowed to participate in long term trends.
|Relative Strength Is...|
Relative strength measurements are undistorted by emotion or personal bias. It is not necessary to interpret whether or not a stock is exhibiting strong relative strength. It either is, or it is not. Only stocks with strong relative strength are candidates for our portfolios.
Whether the market is favoring mid-cap growth stocks, dividend-paying stocks, Blue Chips, stocks with high fundamental valuations, etc., our relative strength screens will lead us to those stocks being rewarded most by the market, with the probability that these stocks will continue to be good performers in the future.