#45: Michael Oliver On The ’Massive Momentum Structure’ In The Stock Market
Superinvestors and the Art of Worldly Wisdom
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The Value of Isolating Momentum
A major asset manager, Ray Dalio, several months ago put out a statement to the effect that people should be less concerned about the price of their stock than the value of their money. So we analyze price in its relationship to various averages, and we get a somewhat different picture than what you see on a price chart. We do everything from 36-month or three-year average, which is a long-term trend assessment, three-quarter average, similar to 200-day in duration. All the way down to three-day averages. And when you measure against that average, it's not just reflection of the price going up or down, but it's distance from above or below
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