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Henry Ford's MARKET
SECTOR ROTATION STRATEGY:
A 100% Mechanical System for Fidelity and Rydex
no-load Sector Funds
HOW MANY FUNDS AND WHICH ONES?
HOW DO WE SELECT THE FUNDS TO SWITCH BETWEEN?
It takes more sophisticated analysis than the vast majority of investors or even
institutions are willing or able to do. Very simply put, our proprietary analysis
method takes into account the interaction between the various funds using each fund's
performance plotted against each other fund and combination of funds through several
business cycles and and market peaks and valleys to evaluate the interaction between
funds. In all, we ran permutations of all combinations of 38 leading funds
plus the money market fund against each other, ie., in pairs, triplets, quads etc.:
A TOTAL OF 19760 DIFFERENT COMBINATIONS ARE TESTED TO DETERMINE BEST COMBINATIONAL
PERFORMANCE. As a simple example, there is no point in including two financial related
sectors or two electronics sectors in our mix. Testing shows that these pairs are
simply competing for the same dollars and between the pairs one of each set interfaces
better with the other funds in the mix to fill in the cyclical gaps.
The result is a culling of 5 funds, (plus Money Market), that when rotated through
the very simple selection method I will teach you, provides the best possible composite
result over time.
 
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