Relative Strength

  • August 2, 2001
  • Mark Boucher

Analysis covering the early 1900s to the mid 1980s showed that the single
most reliable independent variable for determining the strength of individual
equities over the following six-month period was relative strength. In equity
markets, the strong often get stronger and the weak often get weaker.

–Mark Boucher, from The Hedge Fund Edge (1999, John Wiley &
Sons, New York).