Gil Blake - Fund Timer

Discussion in 'Strategy Development' started by BlueHorseshoe, Feb 20, 2003.

  1. Does anyone here rigorously conduct mutual fund timing ala Gil Blake in "The New Market Wizards?" Here is an excerpt:

    "Blake is a mutual fund timer. Generally speaking, mutual fund timers attempt to enhance the yield return on a stock or bond fund by switching into a money market fund whenever conditions are deemed unfavorable. In Blake's case, he doesn't merely switch back and forth between a single mutual fund and a money market fund but also makes the addtional decision of which sector in a group of sector funds provides the best opportunity on a given day."

    I would like to find out if anyone is generating an incremental return w/ this. What fund family / broker do you use and do you recommend any online references?

  2. I don't do this but the Rydex funds were designed for this type of trading.
  3. Mutual funds do not trend in such a smooth way anymore like they did in the 80's and 90's (especially upwards). So that would likely not work today.
  4. links

    links Guest

    I was also intrigued by the ideas presented by Blake. I didn't do mutual fund research but looked into ishares, small obscure sector ETF's etc. It needs further research but I think what he was doing with Mutual funds can now be easily done by ishares etc. with the added advantage of going short.

    Alas I never finished my research, but gave it up in favor of more short term swing trading with better returns.
  5. ETF's are even worse for above strategy because of bid/ask spreads which are HUGE in your "small, obscure" example. Coupled with the less-trendiness of indexes/funds of late and sorry, but ain't gonna work either.
  6. nkhoi

    nkhoi Moderator

  7. A lot of things that were *successful* up 'til 2000 ain't exactly as successful after. Good luck with most of those strategies.