SI178: Value Investing vs Trend Following ft. Jerry Parker

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 ‘safe assets’, Jerry & Richard Brennans’ thoughts on Howard Marks’ remarks about Trend Following, risk parity within a Trend Following portfolio, the unpredictability of endogenous outliers, and deconstructing the old narrative that ‘Trend Following is dead’.

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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

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 ‘safe assets’
• Howard Marks’ 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 – Intro

01:44 – Macro recap from Niels

05:24 – Weekly review of performance

11:51 – Jerry & Rich’s thoughts on Howard Mark’s opinion of Trend Following

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

43:45 – Risk parity within a Trend Following portfolio

51:03 – The unpredictability of endogenous outliers

01:10:08 – The old narrative that ‘Trend Following is dead’

01:13:54 – Benchmark performance...