Fundamental Financial Analysis and Evaluation of IBD's Model for Buying and Selling Common Stocks

Abstract

This abstract was created post-production by the JFI Editorial Board.

The IBD model is aggressively marketed and widely used by a large group of stock market investors, known as momentum investors, using technical analysis to make buy and sell decisions. Although Investor's Business Daily claims that investors who follow their model have and will dramatically beat the market, there is no existing portfolio of stocks whose historical performance can be independently verified. IBD's claims of outperformance are most likely greatly exaggerated.