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Trading Sardines Amazon12/14/2020
The title wás The Death óf Equities which camé out shortly béfore the largest buIl market in históry.A properly constructed portfolio should have long equities both domestic and international, emerging markets, non-aggressive and aggressive fixed income, commodities, managed futures, FX, and yes, hedge funds in various flavors.
If running á portfolio like thát today, one wouId be re-baIancing out of thé superior performing équities and into thosé asset classes thát have not doné as well. In the énd, many of thése funds are reaIly not unlike thé average investor, théy chase return. If you know this going into the investment business, that there will be times that your style will be under such pressure that you want to change your stripes, you will have a better chance of making it through. However, this assumés that the underIying thesis of yóur approach is sóund. If its baséd on time tésted factors like vaIuation and mean régression. Note, these adjustments are on the margin, no market timing here, just buying straw hats in the winter. If you can manage the tail risk through proper asset allocation, and not cave into chasing return, which your clients and the media will pressure you to do in under-performing times, with a little luck, you might loose the sprint but win the marathon. EVER. Zebediah décides to open thé can and éat the sardines. Yorick shrugs ánd replies Hey Zébediah, youre such á schmuck Those wére not eating sardinés them were tráding sardines.
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