What are the Merits of Following a Model Portfolio or Fund Trading Strategy?
In the sense that following no strategy is in itself a strategy, every investor uses some strategy. The Model Portfolios (or fund trading strategies) featured at Beat The Dow will, in most cases, enable investors to either improve returns, reduce risk, or both. The mere process of choosing among several proactive strategies like those featured at Beat The Dow forces investors to anticipate expected outcomes and to set viable goals. Selecting and following a strategy enforces discipline, removes doubt, and lessens worry. And adhering to the strategy will — at the very least — control risk. There are two types of models: Fund Rotation Models and Paired Equities Models.
