Last month in DailyWealth, I introduced you to the “near-perfect” investing portfolio.
It’s a simple strategy… one that has delivered 10%-plus compound annual gains for four decades.
Most impressively, over the past four decades, this strategy had only one losing year… a -0.6% loss in 2008. (Keep in mind the stock market fell by 37% in 2008, and most other investments lost value as well.)
When I introduced this simple strategy to you last month, I didn’t show you a simple, one-click way to trade it. That’s because it didn’t exist.
[ad#Google Adsense 336×280-IA]Today it does. (Sort of.)
This simple strategy was developed by a good friend of mine – Meb Faber.
The basic idea of the strategy is that the world is your oyster…
You don’t want to just own U.S. stocks.
You want to add foreign stocks, real estate, commodities, bonds, etc.
The important thing Meb discovered in creating this simple system is that you simply want to own what has been going up in recent months… and you don’t want to own what has been going down. The basic idea is “momentum.”
Last week, Meb launched a “global momentum” fund to do just this. The symbol is GMOM. Its name is the Cambria Global Momentum Fund.
In Meb’s original simple strategy, he had just five asset classes. It worked well, obviously. But you don’t want to be limited as an investor… That’s like limiting the artist Van Gogh to the primary colors – with -no mixing allowed.
In Meb’s new exchange-traded fund, he starts with 50 “colors” – 50 different investment classes, sectors, and countries – and he puts the money to work in the ones with the best momentum. Specifically, he buys the top one-third of them, based on recent performance.
So GMOM is not exactly Meb’s original simple strategy. I spoke with Meb about this a couple days ago on the phone and he believes that, in principle, the concept is the same.
Meb’s near-perfect investment portfolio was built on being willing to own whatever is going up in the world – stocks, bonds, commodities, or real estate. To Meb, GMOM is a simple and improved evolution of that idea.
Even better for you, you now have a way to buy into this idea, with just one click…
For more on Meb’s new fund, visit here.
Good investing,
Steve
[ad#stansberry-ps]
Source: Daily Wealth