New Index Designed to Reflect Martin J. Pring’s Proprietary Investment Strategy, Tactically Rebalancing Asset Classes Based on U.S. Economic Business Cycle
NEW YORK (March 14, 2012) – Dow Jones Indexes, a leading global index provider, today announced the launch of the Dow Jones Pring U.S. Business Cycle Index, a gauge designed in collaboration with Pring Research to reflect its proprietary investment strategy that tactically allocates among stock, bond, commodity and cash segments based on the phase of the economic business cycle.
The index will closely track the investment strategy developed by Pring Research’s Principal and President, Martin J. Pring, an award-winning author who has devised a rules-based methodology with the goal of achieving higher risk-adjusted returns relative to multi-asset or “blended” benchmarks.
“In building this new index with Pring Research’s proprietary investment strategy at its core, we have created a unique tool for measuring an investment strategy that dynamically changes the mix of several asset classes depending on the current stage of the U.S. economic business cycle,” said Dow Jones Indexes’ President, Michael A. Petronella.
Backtested historical data calculated daily back to June 30, 2006 indicate the Dow Jones Pring U.S. Business Cycle Index has outperformed equities, commodities, and multi-asset benchmarks on an absolute and risk-adjusted basis. Dynamic in nature, the index automatically rebalances on a monthly basis in response to signals generated by the model.
Mr. Pring founded Sarasota, Fla.-based Pring Research in 1981 and began providing research for financial institutions and individual investors around the world. Since 1984, he has published the Intermarket Review, a monthly market report offering long-term synopses of the world’s major financial markets. Mr. Pring is also chairman of Pring Turner Capital Group – a Walnut Creek, Calif.-based money management firm dedicated to allocating assets according to Mr. Pring’s proprietaryU.S. business-cycle research.
Over the course of his career, Mr. Pring has been quoted in many major financial publications and has written more than 20 books, including Technical Analysis Explained, which has been translated into 10 languages and is required reading for the Chartered Market Technician’s exam.
Today’s index launch follows the September 2011 announcement by Dow Jones Indexes and Pring Research in which the firms announced an agreement to develop and co-brand a U.S. business cycle gauge designed to closely track Pring Research’s proprietary investment strategy.