Market trends: far and away the most powerful drivers of investment performance

More than a century of empirical data covering 18 of the world’s largest stock markets show beyond a shadow of doubt that market trends are the most powerful drivers of investment performance. The foundations of a successful long-term investment management practice should rest on four pillars: TruthStrategyDisciplinePatience Truth is what we try to uncover by … Continue reading Market trends: far and away the most powerful drivers of investment performance

Navigating the commodities super-cycle: trend following or long-only ETF?

Over the past few months, there's been a growing consensus among market analysts that commodity markets will likely outperform other asset classes over the next decade. This has been my contention as well. One of the readers of our newsletters asked a simple question: why do I not just buy a commodity ETF? It's actually … Continue reading Navigating the commodities super-cycle: trend following or long-only ETF?

Sack your quant!

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!