CMG Capital Management Group CEO Steve Blumenthal initiated his monthly analysis of the Zweig Bond Model in Forbes. See Zweig Bond Model Remains Bullish.
Created in the mid 1980’s by famed investor Marty Zweig, the Zweig Bond Model’s objective is to invest in bonds with longer maturities when interest rates are declining (a good environment for bond investments) and to invest in shorter-term instruments when interest rates are rising (a bad environment for bond investments).
It’s a mathematical and unemotional process. While Wall Street was saying interest rates will head higher in 2014, this process stayed invested in longer-term bond funds and bond ETFs. So far, year-to-date, that has been the right move (bullish buy signal for bonds).
The annual gain per annum according to the model was 9.68% vs. a buy-and-hold gain of 7.10%.
Steve will be analyzing the Zweig Bond Model once a month in Forbes. You can sign-up for updates here at AdvisorCentral for discussion of equity and fixed income strategies, and portfolio construction from the tactical investing team at CMG.