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Sounds as though a mutual fund that utilizes this strategy along with a few other strategies mixed in might indeed be worth while to develop as a niche type fund that would be designed to complement a well diversified portfolio incorporating it with some special investment strategies.
It's ticker might become SPIFX meaning that it centers itself around certain S&P Indexes (S&P 500, S&P 400 & S&P 600) ... and, if X applies then it follows a certain mandate that incorporates the Sell In May Strategy along with perhaps a few other well known strategies such as the Dogs of the Dow and maybe some others mixed in like a thermostat strategy (CTFAX) in which if the S&P 500 Index falls a certain percent then it will increase its allocation to equities and and reduce its allocation to cash or bonds. Doing this would help diversify it away from a single investment strategy.
Heck, I'd probally invest in it as it would simplify things for me as I usually follow the Sell In May Seasonal Strategy with a small part (up to about 5% to 10%) of my equity allocation anyway. This strategy is not new and has been around for a good number of years and one that my late father utilized many, many years ago. And, even today the family still follows it within family portfolios. However, we usually switch stocks out for bonds or cash and vice versa. I currently use FDSAX to gain exposure to the Dogs of the Dow strategy as about one third of it's holdings come form the strategy.
In addition, my engineer buddy (that I made a post about a while back) utilizes a modified model of the Sell In May Strategy as he follows the calendar as a timing guide but uses technical analysis as to when to enter or exit the strategy over exact calendar dates. I have provided a link back to this discussion for those that would like to reference it. He also, utilizes a thermostat type strategy wherein if the S&P 500 Index drops a certain percent in what he believes is a mere pull back within a bull market he will reduce his cash and/or his bond position and raise his stock position.
Does anyone know of a mutual fund that currently employes a seasonal type trading strategy along with maybe a few other strategies mixed in such as the "Dogs of the Dow" and even a thermostat strategy to help diversify it away from one single strategy?
I'd most likely be a buyer of it if it's fee structure was reasonable as it would simplify things for me that I am currently already doing; but, this would put it in an auto mode for me and also get me away from having to follow the markets as closely as I currently do.
For those wanting more detail on some etf's and etn's that trade the Dog of the Dow or some type of strategy centered around it, I have provided the below link.
Comments
It's ticker might become SPIFX meaning that it centers itself around certain S&P Indexes (S&P 500, S&P 400 & S&P 600) ... and, if X applies then it follows a certain mandate that incorporates the Sell In May Strategy along with perhaps a few other well known strategies such as the Dogs of the Dow and maybe some others mixed in like a thermostat strategy (CTFAX) in which if the S&P 500 Index falls a certain percent then it will increase its allocation to equities and and reduce its allocation to cash or bonds. Doing this would help diversify it away from a single investment strategy.
Heck, I'd probally invest in it as it would simplify things for me as I usually follow the Sell In May Seasonal Strategy with a small part (up to about 5% to 10%) of my equity allocation anyway. This strategy is not new and has been around for a good number of years and one that my late father utilized many, many years ago. And, even today the family still follows it within family portfolios. However, we usually switch stocks out for bonds or cash and vice versa. I currently use FDSAX to gain exposure to the Dogs of the Dow strategy as about one third of it's holdings come form the strategy.
In addition, my engineer buddy (that I made a post about a while back) utilizes a modified model of the Sell In May Strategy as he follows the calendar as a timing guide but uses technical analysis as to when to enter or exit the strategy over exact calendar dates. I have provided a link back to this discussion for those that would like to reference it. He also, utilizes a thermostat type strategy wherein if the S&P 500 Index drops a certain percent in what he believes is a mere pull back within a bull market he will reduce his cash and/or his bond position and raise his stock position.
http://www.mutualfundobserver.com/discuss/discussion/22938/my-engineer-buddy-is-now-crowing-but-we-both-have-smiles#latest
Does anyone know of a mutual fund that currently employes a seasonal type trading strategy along with maybe a few other strategies mixed in such as the "Dogs of the Dow" and even a thermostat strategy to help diversify it away from one single strategy?
I'd most likely be a buyer of it if it's fee structure was reasonable as it would simplify things for me that I am currently already doing; but, this would put it in an auto mode for me and also get me away from having to follow the markets as closely as I currently do.
http://www.nasdaq.com/article/5-investor-friendly-dow-dog-etfs-for-2015-etf-news-and-commentary-cm430446