<< MPT is based on the premise (flawed, in my opinion) that all the known information is already priced
into the stock. >>
OGM: Sounds like the efficient market theory, but I don't think Navellier's MPT is based on that. Rather, he uses proprietary measures of volatility (which he wants low), earnings momentum, relative strength (alpha, as I recall, which he wants high), analysts revisions, margin improvement, .... He builds a model around these parameters and trades it pretty mechanically. According to Mark Hulbert, he's done very well over the past 10 - 15 years. Jim Collins, co-conspirator in this apporach, has done very well too.
Wade |
