SI58: The consequences of Bank of America declaring the END of the 60/40 portfolio

Published: Oct. 19, 2019, 9:22 p.m.

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This week, we discuss Bank of America\\u2019s declaration of the end of the traditional 60/40 portfolio, the different attitudes to having \\u2018insurance\\u2019 in the markets, the reasons why too many fund managers are aiming for average returns, and the importance of consistently being present to profit from the biggest price moves.  Questions we cover this week include: what can be considered a large enough sample size when performing a backtest? What is the best investing advice you have ever received? Should Trend Following funds screen potential clients? How do you deal with positions that show no price movement for a period of time?

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Episode TimeStamps:

00:00 \\u2013 Intro

01:05 \\u2013 Macro recap from Niels

04:10 \\u2013 Weekly review of performance

07:00 - Top tweets

38:00 \\u2013 Question 1: Jacob; How do you do actual executions (order types, manual, etc.)?

40:50 \\u2013 Question 2: Jacob; When you get a fill, how do you set your stop?

42:40 \\u2013 Question 3: Jacob; What happens if a stop is hit on the day of entry?

45:40 - Question 4: Mannik; What sample size is sufficient for a backtest?

49:30 \\u2013 Questions 5/6: Craig; Should TF investors be screened for patience? What personality traits are best for TF and the required patience?

57:40-  Questions 7/8: Dimitri; How do you handle positions that haven\\u2019t moved in a long time? Does the potential for a large move increase the longer a price goes sideways?

01:03:20 \\u2013 Benchmark performance update

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