Is there any reason you shouldn't combine investment strategies? If you consider Value, GARP, Mean Reversion, or Momentum... how about pairing them up?
For example, Value or Mean Reversion strategies alone probably will eventually pay off, but for how many years or decades can you afford to wait (witness 1970s)? How about pairing GARP with Mean Reversion so that the (growth at a reasonable price) will filter your M.R. candidates down to those already showing earnings improvement? Less dead time. Or you could pair Value candidates with Momentum under the same principle.
What I like pairing Momentum with "skeptical sectors". Not sure how to name the latter - not the dogs or the disdained since they may be appreciated, but they are knee-jerk under-appreciated. So they don't get overbought by momentum players and crash, but ascend in a medium speed that just keeps going and going.
This seemed true for years in emerging stock markets, which many investors just stereotyped as banana republics with poor accounting. Now that sounds more a description of the developed world, but anyway roaring E.M. stock markets finally priced in their great economies and have hit a pause.
Lately I have applied that principle to GLNG which profits from the US pushing away logical energy choices in favor of subsidizing looney popular alternatives. GLNG ships clean energy from under-appreciators to countries where logic still rules. Caveat: not a current recommendation. You could have bought it cheaper when I mentioned it 3 months ago (up 30% since then, 150% in last 6 mo, or 300% in 12) but now better to find something cheaper on your own.
So to ape the GARP acronym... how about MOSS for Momentum Of Skeptical Sectors? I would rather hit an etf sector rather than a volatile stock
- maybe someone has special knowledge of one being held back by a popular false assumption?
Another crazy idea is MVOV Mean Reversion of Volatility. Isn't volatility (such as measured by VIX or VIXY) more cyclical in a pronounced way vs stock prices? Not upward biased: