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“It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so.” - Mark Twain
The Top 10% Reality
Diversification is the only ‘free lunch’, right?…
A landmark study by J.P. Morgan Asset Management seems to say differently:
The 66% Drag: Two-thirds (66%) of all stocks in the Russell 3000 between 1980 and 2021 actually delivered negative relative returns compared to the index.
The Absolute Failure: Over 40% of individual stocks experienced negative absolute returns over that same period—meaning they simply lost money.
The 10% Solution: The majority of net wealth creation in the market is driven by a tiny minority (~10%) of “megawinners.”
The Sword is our systematic filter designed in attempt to find these ‘Megawinners’. Each month, our algorithm analyzes the market for the top five names exhibiting the highest relative strength and institutional quality. When The Shield is Green, we focus here to capture the "Momentum Factor".
⚔️ January Intra-Month Review
The Strategy: The next Sword Ranking release (February 2), our Sword Algorithm will trigger a rebalance in attempt capture top tier momentum.
The Leaders: Three of our current M5 rankings have continued strong momentum from (as of now) and are likely to remain in the top 5 for February.
The Laggards: Two names have been flagged by the system for a potential exit on February 1. Time will tell.
⚔️ The Top 5 Leaders (January)
These five names represent the current Sword Rankings.
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