I am relatively new to equities and am certainly a follower (of VP forum only) obviously no expert at investing…so probably i may be far from knowing many things.
but
Vishwanath…i am trying to raise a doubt in order to strengthen the idea …Pls consider my comments in that sense…yes ?
As i’ve always been saying…the real test of momentum method is bear market or when the market is in sideways…why i am saying ?..
Since you’ve already answered it. let me ask follow up question…how this method can be improved/tweaked for bear market/sideway market.
I think many of us on here would agree, if i say “lots of newcomers i know have had more than 100% return in last ~2 yrs…they dont follow any valuation method/momentum method” …they followed good names/PSU/renwable/Defence…etc…so i tend to presume that the returns have been very good for most of the people only because small caps have been on a dope and even exhibited animal spirit at a time (Nove-23 - Feb-24 ) !
I agree with you 100% here and we might be able to protect gains from being washed away completely…if we can identify the bear early on and if we dont rebalanc. ( just a layman’s idea )
If the market is getting weaker and we rebalance on weekly, Will we be taking hit every week ?..because my understanding is that we always be able to find relative strength of the names at any given time…pls correct me here if i am wrong.
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