Le mot de Cambronne pretty much summarizes the market from the big picture passive investing point of view. The first plot above shows the results for a portfolio of 20 low Beta/low R-Squared stocks versus SPY. The financial sector problems have erased the broad market returns of the past two years.
The down market makes the case for a more active approach to investing. For example, the second plot above shows the equity curve for a long only mechanical trading system over the same time period as the first plot. The 3x2 trading method is making new equity highs as SPY continues to sink. Perhaps some of your long term money should be committed to a trading approach.
La garde meurt, mais ne se rend pas!
No comments:
Post a Comment