Episode 287: The Big Mo, Emerging Market GDP Follies, And Flying On A Golden Butterfly

<p>In this episode we answer emails from Chas, MyContactInfo and JDM.  We discuss momentum-based funds and strategies (see also Episodes 218, 231 and 234), the inherent difficulties of trying to use GDP and other macro-economic data to make investing decisions and the basics of implementing a Golden Butterfly portfolio.<br/><br/>Links:<br/><br/>AQR Article -- Fama on Momentum:  <a href='https://www.aqr.com/Insights/Perspectives/Fama-on-Momentum'>Fama on Momentum (aqr.com)</a><br/><br/>Interview of Professor Fama:  <a href='https://www.top1000funds.com/2015/12/investors-from-the-moon-fama/'>INVESTORS FROM THE MOON: FAMA (top1000funds.com)</a><br/><br/>Chas&apos; Asset Correlation Analysis:   <a href='https://www.portfoliovisualizer.com/asset-correlations?s=y&amp;symbols=MTUM%2C+VIOV%2C+SPY%2C+VUG%2C+TLT&amp;timePeriod=2&amp;tradingDays=60&amp;months=36'>Asset Correlations (portfoliovisualizer.com)</a><br/><br/>VIOV vs. XSVM vs. DFSVX:  <a href='https://www.portfoliovisualizer.com/backtest-portfolio?s=y&amp;timePeriod=2&amp;startYear=1985&amp;firstMonth=1&amp;endYear=2023&amp;lastMonth=12&amp;calendarAligned=true&amp;includeYTD=false&amp;initialAmount=10000&amp;annualOperation=0&amp;annualAdjustment=0&amp;inflationAdjusted=true&amp;annualPercentage=0.0&amp;frequency=4&amp;rebalanceType=1&amp;absoluteDeviation=5.0&amp;relativeDeviation=25.0&amp;leverageType=0&amp;leverageRatio=0.0&amp;debtAmount=0&amp;debtInterest=0.0&amp;maintenanceMargin=25.0&amp;leveragedBenchmark=false&amp;reinvestDividends=true&amp;showYield=false&amp;showFactors=false&amp;factorModel=3&amp;portfolioNames=false&amp;portfolioName1=Portfolio+1&amp;portfolioName2=Portfolio+2&amp;portfolioName3=Portfolio+3&amp;symbol1=VIOV&amp;allocation1_1=100&amp;symbol2=XSVM&amp;allocation2_2=100&amp;symbol3=DFSVX&amp;allocation3_3=100'>Backtest Portfolio Asset Allocation (portfoliovisualizer.com)</a><br/><br/>Swedroe Article re GDP and Emerging Markets:   <a href='https://www.evidenceinvestor.com/gdp-growth-and-emerging-market-returns/'>Is there a link between