While much of the investing community focuses on individual stocks, there is an abundance of academic research advocating the importance of strategic asset allocation when it comes to portfolio construction. In this article, I lay out an investing model that begins with a wide array of asset classes but does not follow the buy-hold-rebalance model. Instead, the following portfolio makes use of the momentum anomaly, one of the critical variables now included in the Fama-French five-factor asset pricing model.
Assume we have a $100,000 account with Schwab. There is nothing special about Schwab. We can