Dynamic Technology Strategy
How does the strategy work?
The Dynamic Technology Strategy invests all of its holdings in one of the indexes below that have the strongest recent performance. The strategy will recommend 100% of funds be held in the strongest performing index when price momentum is strong.
- S&P 500 index.
- NASDAQ 100 index heavily weighted in technology sector.
- MCSI EAFE (Europe, Australasia and Far East) Developed Markets index.
- Emerging Markets index.
Like all of our strategies, this strategy is designed to move from risky assets (stock indexes) to safety assets (bond indexes) when the broader indexes show weakness in recent performance. The intermediate-term government bond index (IEF) is used as a source of safety funds.
|U.S. Large Cap||SPY||SPDR S&P 500 ETF Trust|
|Developed Foreign Markets||EFA||iShares MSCI EAFE Index Fund|
|Emerging Markets||EEM||SPDR S&P 500 ETF Trust|
|U.S. Technology||QQQ||PowerShares QQQ Trust|
|Government Bonds||IEF||iShares Barclays 7-10 Year Treasury Bond Fund|
|Annual Return (20 years)||12.3%||6.7%|
|Sharpe Ratio (20 years)||0.85||0.68|
|Drawdown Start / End dates||August 2021 to February 2023||October 2007 to December 2010|
|Max Drawdown length||18 months||38 months|