Chris Dillow 

Momentum in commodities

Chris Dillow

Chris Dillow
Momentum in commodities

One of the best and simplest risk management devices is to follow the 10-month (or 200-day) moving average rule: you buy if prices are above their 10-month average and sell if they are below it. Mebane Faber at Cambria Investment Management has shown that this rule works well for the S&P 500, and I’ve shown that it also does well for the All-Share index, emerging markets and mining stocks.

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