The investment strategy described by Gary Antonacci in my previous episode is not only a theoretical model. Today I have a pleasure to present you two separate discussions with people being professional financial advisors in the United States. One thing they have in common is that in their investment process, they use an idea introduced by Gary. What I’ll try to find out is why they got interested in Dual Momentum.
In this episode:
- Assets allocation and tactical money management
- Value investing/fundamental analysis
- How rule-based, systematic trading approach can be used?
- What are the main reasons why most people are poor traders/investors?
- Why dynamic allocation is so important, how it works in Dual Momentum and how it’s different from permanent diversification?
- Trend-following strategy based on diversified futures portfolio vs. momentum applied on stock indices
- Myopia problem — why paying too much attention to short-term performance can skew our long-term investment strategy?
- Can average investor/trader compete with professionals?
- Proprietary Dual Momentum models
- How should we approach the model backtesting to avoid curve-fitting pitfall?
- What is a Fiduciary?