Rule of 240 Compounding

Most investors are familiar with the “Rule of 72,” a formula for approximating the time it takes an investment to double at a given compounded annual return. The rule states that dividing 72 by the annual return equals the number of years to double. Conversely, the...

Rule of 240

Most investors are familiar with the Rule of 72, a formula for approximating the time it takes an investment to double at a given compounded annual return.  The Rule states that dividing 72 by the annual return equals the number of years to double.  Conversely, the...

Anchored Momentum

When I started developing a mutual fund selection and trading system in the mid-1980s, I wanted to own the funds that were going up and avoid the ones going down.  Therefore, I quickly gravitated toward price momentum as an indicator and selection tool.  One of the...