Disclaimer: All investment models have inherent limitations in that they look back over previous data but can’t see into the future, and CPM is no different. Past performance does not guarantee future results.  These limitations aside, however, our model argues against the buy and hold “strategy” and the assertion by its proponents that “you can’t time the market” or “you can’t beat the market”.
Attempting to get out of the way of an emerging market decline comes with the inherent risk of potentially missing out on some performance — especially considering the current “buy the dip” mentality engendered by a decade of stimulative Federal Reserve policy.  However, our model’s performance is a testament to intelligent quantitative risk management, showing that a conservative, systematic, and repeatable process of active management can over time significantly outperform passive buy and hold.
This data is provided for information purposes only. Past performance or back-tested results may not necessarily indicate future results. The performance indicated from back-testing or historical track record may not be typical of future performance. No inferences may be made and no guarantees of profitability are being stated by Asbury Research LLC. The risk of loss trading in financial assets can be substantial. Therefore, you should therefore carefully consider whether such trading is suitable for you in light of your financial condition.