One thing I have learned over time is the best thing to do is let market price action guide your decision-making and then try to understand the fundamentals as they become more evident and comprehensible."Paul Tudor Jones, "The Great Monetary Inflation" - May, 2020 Institutions like Nomura, JPMorgan, Rabobank and others watch CTA hedge funds' … Continue reading CTAs and the treasuries reversal: time to pay attention?
For indeed, the investor’s chief problem – and even his worst enemy – is likely to be himself.Benjamin Graham This is a rather spectacular story. It is 20 years old but it is as relevant today as it ever was for it sheds light on one of the key problems in investment speculation: human psychology. … Continue reading How Stan Druckenmiller missed market top by an hour and lost half his fund
A subtle understanding of economic change comes from a knowledge of history and large affairs, not from statistics or their processing alone...Arthur Burns (Federal Reserve Chairman and Milton Friedman's economics professor) Since the last financial crisis, Renegade Inc. has produced a long series of documentary programs and interviews with leading economists and thinkers like Richard … Continue reading The next stage: banking crisis or inflation?
During the 1970s inflation, M2 money supply growth never surpassed 14% per annum. This year we just blew past 23%. It is time to start paying attention!
This is not a hollow boast. While I-System has generated superb performance over the years, the key reason for this claim reflects a higher-order quality of the model: I-System has the potential to entirely transcend uncertainty and largely replace the human factor in asset management in a broad variety of investment strategies including portfolio allocation, … Continue reading I-System: probably the best trend following model ever built
Over the past few trading sessions, I-System strategies have gradually reversed from long to short positions on treasury futures (long gilt, German bund, US 30-yr T-Bond), with the exception of the 10-year T-Note where our positioning remains net long. This could be a significant development if we are looking at the beginning of a major … Continue reading Are treasury futures signaling a trend reversal?
Copper market is an important indicator of the overall economic activity. Given the pervasive uncertainty over the last 12 months, the price of Copper has staged two major trend reversals – never a good environment for trend followers. Nonetheless, with the last two months’ rally, I-System strategies have again proven their worth. Performance of the … Continue reading I-System and COMEX Copper trading
Oil price has had a wild ride this year, crashing nearly 80% from January through April. I-System strategies navigated the event remarkably well, capturing more than $42/bbl in profits. At the time, I summarized this in my article, “With I-System through the storm… with flying colors!” But trend following does less well during trend reversals … Continue reading I-System and the 2020 oil price roller-coaster…
In spite of the obvious differences betewen the Soviet and U.S. economies there are disconcerting parallels between the systemic roots of their respective crises (USSR in 1980s and USA today).USSR's stalling GDP growth, growing 'defence' budget and balooning budget deficits ultimately led to currency debasement and high inflation. There's every likelihood that U.S. dollar will … Continue reading Inflation: lessons from last empire’s collapse
Last few years saw something of a gold rush into quantitative investment strategies. Their appeal is obvious as a way to put discipline into trading and take the emotion and stress out. Quantitative strategies might even help improve performance. Here’s how Black Rock President Rob Kapito articulated the industry hopes: “As people get the data … Continue reading Sack your quant!