Originally Posted by
beafet
I decided to put this in it's own thread instead of hijacking the LMBFM thread.
My theory is that if you choose to invest in the second best performing fund of the prior month, you will catch a lot of trends before they peak.
I think my math must be off somewhat, but here are the returns I've calculated so far.
2009: 42.84% as of COB December 29
2008: -8.49%
2007: 1.18%
2006: 22.46%
2005: -3.03%
End of month for December 2009:
G= +0.25%
F= -1.51%
C= +1.98%
S= + 6.66%
I = + 0.81%
Anyone using the last month's best fund method would invest for January in the S fund. Using my theory, you would invest 100% into the C fund.
My goals for this theory (should it continue the way it has been) is to a) beat the LMBFM, yet b) be just as easy to implement. If anyone has any thoughts or ways to refine it, let me know!
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