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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: FlyingCircus ✧  😊 😞
Number: of 6243 
Subject: Re: mechanical for taxed
Date: 02/17/24 11:04 PM
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No. of Recommendations: 3
Wan, that's a good long term target. You have to assess what kind of investor you are first.

There are plenty of mechanical strategies, even MI screens, that will get you an average 10% over years. But, without some method of downside protection (Bear Catchers), you may see a 10%+ drawdown in any given month, or over 20% over months, on average every few years.

Or, you can invest in ETFs following relative strength methods, including a number with good dividend yields, without the volatility of stock screens or stock picking. But, still need downside protection -
like the Bear Catchers or other intermediate timing signals - when the market goes south there's no place to hide (unless you're a brilliant contrarian / shorter / leverage guy).

A barbell of high growth / high vol funds / stocks (20%) with super safe Treasury funds with less than 7 years maturity on the other end (20-30%) is a good approach as well.

It really depends on how much time you have left to accumulate funds vs spend them (years to retirement), which drives how much drawdown you're willing / able to tolerate.
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This community has written 6,227 posts about Mechanical Investing. The article-length ones it recommended most:
Dividend investing · 52 recs · 2025
Non-Mag7 screen · 34 recs · 2025
OT - Div yields and returns · 32 recs · 2024
Using AI to generate backtesting programs · 30 recs · 2025
Rankings for 19Dec2022 · 29 recs · 2022
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