Frequently Asked Questions

Dr K Market Direction Model
I did a brief calculation of the MDM performance over the past 10 years (16% annual return) and the last 35 years (30% annual return). That's a pretty significant difference. Is there anything in particular that explains this difference?

The last 10 years have not enjoyed the strong uptrends of the 80s or 90s. Further, the last two years have been the most challenging on record as they are trendless, volatile markets manipulated by quantitative easing. Nevertheless, our model has managed to well outperform every market cycle. It even outperformed in trendless, volatile 2011. That said, such challenging periods do come to an end and new trends begin. During challenging periods, patience is a virtue of selfish investing.

Published: Dec 3 2012