FYI: Should you invest in last year’s underperformers or continue with last year’s winners? The answer is yes, according to a recent analysis.
Buying both the top three and bottom three market sectors in terms of the prior year’s performance is known as a barbell strategy—a strategy that has been made easier to follow thanks to the plethora of exchange-traded funds. An investor who followed a barbell strategy over the past 25 years would have beaten the broader market and done better than an investor pursuing either individual strategy alone.
Regards,
Ted
http://www.cetusnews.com/business/The-Benefits-of-Buying-Both-the-Best--and-Worst-Performing-Funds.ryVpy_Lr8f.html
