SI178: Value Investing vs Trend Following ft. Jerry Parker

Published: Feb. 6, 2022, 8:59 p.m.

Jerry Parker joins us today to discuss the importance of hanging on to your outlier winners, value investing versus trend following, the optimum number of entry & signals per trade, the need to redefine \u2018safe assets\u2019, Jerry & Richard Brennans\u2019 thoughts on Howard Marks\u2019 remarks about Trend Following, risk parity within a Trend Following portfolio, the unpredictability of endogenous outliers, and deconstructing the old narrative that \u2018Trend Following is dead\u2019.

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In this episode, we discuss:

  • Letting winners run and cutting losses early
  • Using 1 entry signal and 1 exit signal per trade versus multiple signals
  • Redefining what are typically known as \u2018safe assets\u2019
  • Howard Marks\u2019 opinion on following price
  • Achieving effective risk parity within a portfolio
  • How endogenous outliers are hard to predict

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Episode TimeStamps:

00:00 \u2013 Intro

01:44 \u2013 Macro recap from Niels

05:24 \u2013 Weekly review of performance

11:51 \u2013 Jerry & Rich\u2019s thoughts on Howard Mark\u2019s opinion of Trend Following

24:46 \u2013 Why exit rules might be harder to create than entry rules

43:45 \u2013 Risk parity within a Trend Following portfolio

51:03 \u2013 The unpredictability of endogenous outliers

01:10:08 \u2013 The old narrative that \u2018Trend Following is dead\u2019

01:13:54 \u2013 Benchmark performance...