A friend I work with spent a lot of time studying this concept and came up with a consistent 6-trade allocation model that when applied for the past 22 years results in oustanding returns that greatly outperforms the individual funds:
- January: 100% F Fund
- February: 100% G Fund
- March - May: 100% C Fund
- June - October: 100% F Fund
- November: 100% C Fund
- December: 100% S Fund
A couple of points my friend likes to point out are:
- Averaged 16.24% over 22 years.
- Only one losing year over the past 22 years
- Realized the greatest benefit in the bloodbath years (2000-2002 and 2008) as this strategy actually made money while everything else tanked.
I'm interested in what others think of this. BTW, the strategy made 48.13% in 2009.