"Market liquidity, herding and statutory regulations"
The investment decisions of industry are usually based on estimates of usually sales potential, prices in the procurement market and competitive analysis. Financial institutions mainly decide on the basis of "top down" approaches such as the as well as key figures, and as a "bottom-up" approach of business metrics.
Empirical studies show that there won't be any sustainable values achieved while sticking the approaches of market selection.
Studies by the HJB Consulting in the years 1992 to 1996, to the determinants of anomalies in the financial markets, such as overreactions, labels, caps and inefficiencies like response delays due to the news, have led to the development of the "modified comparative relative strength" model.
For this reason one can identify promising industries for example in upward trends and because on our backup strategy "VolaStop" carry out faster responsiveness to implement corrective actions needed.
The advantage are more stable earnings contributions. In addition the backup costs are significantly reduced by dynamic selection.