#20 - Listener Q&A Episode

Published: Sept. 14, 2016, 5 p.m.

Episode #20 is another \u201cListener Q&A\u201d episode. Meb starts by telling us about his frustration after doing a guest panel on CNBC earlier in the morning. (Hint: questions about The Fed tend to annoy Meb\u2026also, if you ever chat with him in person, do not refer to a 1% market move as a \u201cmajor\u201d move.) But soon we change gears, and Meb answers questions including:\n-\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0When following a trend strategy based on a 100 or 200-day moving average, is the idea to buy/sell on Day 1 of the broken trend? Or is it more nuanced?\n-\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0Is there some magic number of days (when following a trend strategy) that is the right length?\n-\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0(The above questions dovetail into a conversation about the #1 mistake the majority of investors make when using a trend following approach \u2013 expecting it to be a return-enhancing strategy.)\n-\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0What are good trend strategies for sideways/chainsaw markets?\n-\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0How about combining a momentum strategy with a simple 10-month trend strategy?\n-\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0When looking at managed future funds, aside from cost, any thoughts on what might warrant choosing one fund over another?\n-\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0(This dovetails into an interesting admonition from Meb in which he suggests listeners should do their own homework on issues like this\u2014after all, if you don\u2019t fully understand a fund\u2019s strategy and have your own reasons for buying it, how will you know whether a 20% drawdown reflects a bad strategy, bad execution, or just bad luck?)\n-\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0Can you earn a 10% CAGR with Dalio\u2019s All Weather portfolio without fear of a major drawdown?\n-\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0(This dovetails into a question about asset allocation \u2013 does it really dominate long-term returns? A listener thought he heard a difference of opinion between Meb and a guest on a past episode.)\nThere are more questions, including one hand-written and mailed to Meb by a college student. He wants to know what qualities, skills, and abilities Meb looks for in new hires at Cambria, as well as what unique skills a college grad should bring to his/her employer. What\u2019s Meb\u2019s answer? Find out in Episode 20.\nLearn more about your ad choices. Visit megaphone.fm/adchoices