Trend Following: An Alternative to Buy and Hold

March 13, 2018 |

Sources and Disclosures:

Chart 1: TradingView S&P 500 Index – Weekly Chart 6/5/2000 – 8/11/2003
Chart 2: TradingView S&P 500 Index – Weekly Chart 9/26/2011 – 2/2/2015
Chart 3: TradingView S&P 500 Index – Weekly Chart 6/5/2000 – 8/11/2003
Chart 4: TradingView S&P 500 Index – Weekly Chart 9/26/2011 – 2/2/2015
Chart 5: TradingView S&P 500 Index – Weekly Chart 11/1/1999 – 7/14/2003
Chart 6: TradingView S&P 500 Index – Weekly Chart 12/11/2006 – 9/7/2009
Chart 7: TradingView S&P 500 Index – Monthly Chart 2/1997 – 2/2018
Chart 8: TradingView SPDR Technology ETF – Symbol XLK – Weekly Chart 6/5/2000 – 7/14/2003
Chart 9: TradingView SPDR Financial ETF – Symbol XLF – Weekly Chart 10/30/2006 – 10/5/2009

Copyright © 2018 Beaumont Financial Partners, LLC DBA Beaumont Capital Management (BCM). All rights reserved.

The views and opinions expressed throughout this paper are those of the author as of February 2018. The opinions and outlooks may change over time with changing market conditions or other relevant variables.

The views and opinions expressed in the referenced articles are those of the writer and may not be the opinion of Beaumont Capital Management. The information above, and the referenced articles, is provided for informational purposes only.

As with all investments, there are associated inherent risks including loss of principal. Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Sector investments concentrate in a particular industry, and the investments’ performance could depend heavily on the performance of that industry and be more volatile than the performance of less-concentrated investment options. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets. The risks are particularly significant for ETFs that focus on a single country or region. The ETF may have additional volatility because it may be comprised significantly of assets in securities of a small number of individual issuers.

Sector investments concentrate in a particular industry and the investments’ performance could depend heavily on the performance of that industry and be more volatile than the performance of less concentrated investment options and the market as a whole.