SMI teaches the importance of using only objective measures and criteria for investment decision-making. All of our investing strategies are formula based. We have very little trust in our "expert opinions" as to what the market will do next or when to buy or sell a mutual fund. Our reliance on the mechanical — and aversion to the subjective or emotional — is based on decades of experience.
Daniel Kahneman, winner of the Nobel Prize in Economics, presents support for our formulaic preference from a broad array of empirical studies. This article will give you a fuller appreciation for SMI's non-emotional approach to decision-making.