7. You Can Beat the Market with Proven Investment Strategies

While we don’t advocate for market timing, we firmly believe in achieving market-beating returns—and that’s exactly what our strategies have delivered over time. Let’s take a look at the period from 2000 to 2022.

• Fund Upgrading Strategy: Achieved an impressive average annual return of 8.1%.

• Dynamic Asset Allocation (DAA): This strategy performed even better, with an average annual return of 9.2%.*

• Sector Rotation Strategy: Our optional strategy for a portion of your portfolio produced a remarkable 12.5% average annual return.**

For comparison, the overall market’s annualized performance was 6.5%*** during this period. SMI’s strategies consistently outperformed the market without relying on predictions or timing.

The graphic below shows how a hypothetical $10,000 investment would have grown from 2000 to 2022 using SMI’s strategies compared to a standard market investment. With strategies designed for resilience and long-term growth, SMI has a proven track record of delivering strong returns—giving you a clear advantage in reaching your financial goals.

^{*DAA results before 2013 are based on backtests using the same methodology now employed in DAA.
**Sector Rotation results before Nov. 2003 are based on backtests using the same methodology now employed in SR.
***"Overall market" refers to the Wilshire 5000 index, the broadest measure of market performance.}