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Sector Allocation Strategy

Jan 08 2021

Bridesmaid Strategy For Equity Managers

  • Jan 8, 2021

Our work on the annual “momentum effect” dates back 15 years, and was originally based on equity sectors rather than asset classes. The hypothetical approach is to entirely dispense macroeconomic trends, sector fundamentals, and valuations, and base the allocation decision exclusively on momentum.

Jan 08 2020

For Value Investors Only!

  • Jan 8, 2020

With the possible diminution of “alpha” in price momentum strategies, we recommend that sector allocators consider approaches that are more countertrend or contrarian in nature.

Jan 08 2020

Bridesmaid Strategy For Equity Managers

  • Jan 8, 2020

Our work on the Bridesmaid momentum effect dates back to 2006, and was originally based on equity sectors rather than asset classes. Again, the hypothetical approach is to ignore macroeconomic trends, sector fundamentals, valuations, and the like, and to base sector selection solely on the prior year’s sector total return rankings.

Jan 08 2019

Bridesmaid Strategy - Sectors

  • Jan 8, 2019

Our analysis of the Bridesmaid effect originated in 2006, but was based on S&P 500 sectors rather than asset classes.

Jan 08 2016

Cheapest Sector Strategy

  • Jan 8, 2016

We recognize that—regardless of their empirical appeal—momentum-oriented approaches aren’t suitable for every investor. For those investors, we’ve identified an alternative sector allocation strategy that’s delivered long-term results almost identical to those of the Bridesmaid approach, but which is based on a single, simple selection criterion that should appeal to the most hard-wired contrarian: The Low P/E.

Sep 05 1993

New Sector Initiated: “Buy The Numbers”

  • Sep 5, 1993

The Leuthold Group has unveiled a new sector strategy to be employed this month in the Model Equity Portfolio. This is a quantitative approach to the stock selection process involving both fundamental and technical factors.