MarketHeist Portfolio · Strategy

Global Tactical Asset Allocation (Aggressive)

by Meb Faber

Faber's aggressive GTAA pairs relative strength (own the asset classes leading right now) with a trend/absolute-momentum gate (sit in cash instead of a falling asset). Rotating a diversified five-class universe toward its strongest members, while refusing to hold anything in a downtrend, historically delivered equity-like returns with materially smaller drawdowns than buy-and-hold.

CAGR 9.6%

Max Drawdown -17.6%

Sharpe 0.98

Based on

• A Quantitative Approach to Tactical Asset Allocation — Meb Faber, 2007 · The Journal of Wealth Management
• Relative Strength Strategies for Investing — Meb Faber, 2010 · SSRN

Fund histories: VTI · VEA · IEF · DBC · VNQ

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