The last 40 years have been an exceptionally strong period for a portfolio of stocks and bonds. With stocks performing well and bonds benefitting from a tailwind of constantly falling…
Tag: Trend Following
An In Depth Look at Momentum Investing and Trend Following with Jack Vogel (Ep. 69)
There is perhaps no investment factor with more long-term data to support it than momentum. But despite that, its real world usage lags far behind other factors like value. Part…
Excess Returns, Ep. 12: The Pros and Cons of Trend Following
To say that the track record of market timers in general is dismal would be an understatement. There are so many factors that impact market returns that getting them all…
A “Protective” Alternative to the 60/40 Portfolio
By Justin Carbonneau (@JJCARBONNEAU) As this Forbes article points out, the 60/40 portfolio is “one of the most dominant investment approaches of our time”. This asset allocation is incredibly simple…
Computer Models are Bearish
An article in The Wall Street Journal reports that trend-following investment strategies have “gone from bullish to bearish to a degree not seen in a decade, according to an analysis…
The Hedge Fund Strategy That Isn't Working
Although tracking trends in financial markets was once a profitable investment strategy, the approach has fallen on hard times due to crowding. This according to an article in The Wall Street…
Trend-Following CTAs Suffer Performance Declines
Some quantitative investors are concerned that commodity trading advisers (CTAs) are “ill-equipped to handle a new era of steeper declines and sudden volatility spikes,” according to a recent article in…
Some Ideas for Investing in a Low Return Environment
There is a very strong likelihood that returns for investors over the next decade will be significantly lower than what we have seen in the past ten years. With the…
You Can’t Time The Market – But Many People Should
By Jack Forehand, CFA (@practicalquant) — There are few topics that are more controversial in the stock market than market timing. Most long-term investors will tell you that market timing…