In this episode, the ReSolve team delves deep into the challenges and emotional rollercoaster associated with trend following amid an uncertain market environment. They discuss an array of topics, including:
• The impact of Jerome Powell's recent statement on interest rates and its implications for market participants
• The role of central bank policies on systematic investment strategies
• The lack of clear trends, economic trajectories, and market signals in today's financial landscape
• The importance of maintaining small positions and staying prudent in turbulent times
• Potential shifts in the market and what investors should watch for
• The role of investor psychology in trend following and how to manage emotions during market turbulence
• The importance of diversification and its benefits in navigating uncertain markets
• The effects of market noise on trend following strategies and how to filter relevant information
• The potential benefits and risks of leveraging systematic signals in the current market environment
• The role of risk management and position sizing in trend following strategies
• The impact of behavioral biases on decision-making and portfolio management
• The team's thoughts on future trends and potential market opportunities
This episode is a must-listen for anyone interested in trend following, market volatility, and the challenges of investing in today's uncertain environment, providing valuable insights and strategies to navigate these complex markets.
This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management Inc.
*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.