In your recent online timing workshop you explain a simple do-it-yourself Asset Class Rotation strategy. How does it compare to the upgrading system used by No Load Fund-X?

Both the do-it-yourself Asset Class Rotation strategy and Upgrading System used by No Load Fund-X attempt to move into the best performing funds based on recent performance. The portfolio that NLFX has recommended for most investors is their Higher Quality Stock Funds Portfolio. This strategy, as well as the Asset Class Rotation strategy discussed in my online workshop have about the same level of risk as the S&P 500 Index. In the presentation I noted that the results of most systems of this type are very similar, so it won’t surprise you to discover the returns of these two systems are about the same.

The following are the 1, 5, 10, and 15 years track records through the end of 2007. The NLFX results are from The Hulbert Financial Digest. The asset class rotation results, and step by step instructions, are found in the workbook for my online workshop.

Both systems are entirely mechanical so there is no magic. The magic, as usual, is the willingness to maintain a mechanical system.