CPM Investing LLC - Research Publications
Our model portfolios are designed to avoid major losses and to keep pace with a strong stock market, but they do have biases that you should be aware of.
Biases that one should be aware of before investing:
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The target weights in the model portfolios do not change every week. This means that several weeks go by without trading. However, during some market environments, there are trades every week.
When one trades their own account, one cannot help but be wonder if the trades being made are going to be successful. In the Focused 15 Investment strategy, trading can be clustered, which means that we trade the same ETF each week over a few weeks. For example, buying ETF "DIA" one week, selling it the next, and buying it again in the third week. Trade clusters typically occur when the markets are at major inflection points. The subscribers who follow the target weights and can be detached from the experience of clustered trades tend to do better.
We do offer model portfolios that trade only once a month. These avoid the trade clusters but they have lower returns than the weekly trading portfolios.