Stock Market

The turn of the calendar seems to bring out the inner contrarian in some investors—those who will peruse last year’s list of lagging asset classes looking for rebound candidates.

While the consideration of risk seems almost a quaint notion as the bull market nears its eighth birthday, it’s nonetheless worth noting the Bridesmaid allocation strategy has generated a favorable return/volatility trade-off in relation to: (1) the seven candidate asset classes; and, (2) the strategy of owning an asset class with a prior-year total return rank other than #2.

Table 4 shows the annual sector selection and accompanying performance results for the Bridesmaid approach dating back to 1991.

Table 6 summarizes annual sector selection and accompanying performance for the “Cheapest Sector” strategy back to 1991.