Under-Allocating toTrend Following A BIG MISTAKE? | Systematic Investor 288

Join us for the weekly trend following update with Alan Dunne, where we discuss why 2024 is turning into an interesting year for investors with diverging signals from Central Banks. We debate the possibility of the markets entering a bubble and how the levels of interest rates could cause a refinance crisis. Alan also takes us through the history and outlook as per the newly released UBS 2024 Yearbook, uncovering what has been dominating the economy throughout history, and the reason why many investors might be missing out on potential diversification by under-allocating to trend following. Lastly, we discuss the role of hedge funds in a multi asset portfolio and the importance of constructing a portfolio that best suits the investor’s needs.
#toptraders #investing #trendfollowing
Episode Summary
01:21 - What is catching our attention at the moment?
05:40 - Is the economy becoming a bubble?
14:09 - A refinance crisis inbound?
20:41 - Industry performance update
24:49 - The economic outlook and history - UBS 2024 Yearbook
32:29 - Equities are here for the long term
37:57 - All in on equities?
44:15 - Investors are getting this wrong
46:19 - Can hedge funds play the right role?
50:17 - Where do multi-strat funds fit in?
53:28 - Choosing the right strategy
58:00 - Thanks for listening
Full episode can be found here:
toptradsersunplugged.com/si288
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Alan Dunne: / alanjdunne

[@rpsulli]

Such an important discussion on leveraging/deleveraging an optimal portfolio and pairing higher volatility trend with equities. Individual investor here and have been mulling over what contribution of trend on a volatility basis I need paired with equities. There was mention of 1.5x the volatility of soc gen trend matched with equities. I think that’s about ~20 percent volatility. That’s tough for retail non-accredited investors. Anyways, huge fan. This pod has been a great resource for me. Appreciate other episodes raising questions on “Economic Trend” and replication views - so helpful.

[@lucas-rl1ec]

please stop using you know so frequently😪