A simple way to buy trending stocks with limited risk.

Today's market requires investors to have an offensive and defensive strategy. You want exposure to growth stocks in strong uptrends incase we have a 1998-2000 US stock market repeat of 200%+ short term returns but you also want to protect yourself for when the inevitable bear market begins.

Investment Quant Meb Faber has a great solution for you.

Meb has done a lot of research and has released many interesting papers on all his quantitative thoughts about global stocks. With 50 years of data used to back-test this strategy the results are incredible.

During S&P 500s worst periods in the last 50 Years Meb's back tested strategy had average losses of only 2.2%. Which is why it is the perfect strategy for today's market given the volatility.

The fund is called Cambria Value and Momentum Fund (VAMO) (http://www.cambriafunds.com/vamo).

During uptrending US Stock and using a ranking system for the top 100 stocks based on value and momentum, the fund buys stocks that are quantitatively cheap and in an uptrend.

The fund uses a systematic hedging strategy to play defense during declining markets.

If all the bullish conditions are in place the fund has 100% exposure to the stock market. However, depending on the severity of the decline the fund could be upto 100% hedged.

If stocks are not in a strong uptrend or strong downtrend then it will be only 50% hedged or so.

Basically if you want to be long this stock market for the potential blow off top over the next several years but want to make sure you are protected when the next bear market or recession hits then this is a one click way to accomplish that goal.

Cheers to your growing wealth.

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.