Unveiling the Global Predictive Power of Moving Average Distance in Market Timing (Part II)

As financial markets traverse borders, the quest for predictive indicators transcends national boundaries. In December 2023, groundbreaking research by Menachem (Meni) Abudy, Guy Kaplanski, and Yevgeny Mugerman illuminates an intriguing avenue — the use of Moving Average Distance (MAD) to forecast future returns of international market-wide indices. The essence of this study lies in exploring MAD’s efficacy in predicting returns across 92 international market-wide indices. While prior research had primarily focused on MAD as a predictor for U.S. stock returns, this study extends its scope, delving into the global landscape of market indices. <a href="https://medium.com/@bauermartin101/unveiling-the-global-predictive-power-of-moving-average-distance-in-market-timing-part-ii-81de1abf470c">Read More</a>