Episode description

This week, Mark Rzepczynsky joins us for our weekly update on Trend Following, at the end of yet another busy week for inflation watchers. Based on an article by Cliff Asness at AQR, we discuss why you want to own managed futures and why you want to avoid getting "carried away" as a Trend Follower, the dual mandate and the difference between strategy and running a business, innovation in Trend Following and why macro trends do not always translate to price trends. We also discuss how high inflation affects Trend Following and the importance of divergence, why turning points kill the real issue beyond inflation and using the 70 percent rule to make trading decisions, the difference between trend following and momentum and much more.

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Episode TimeStamps:

00:00 - Intro

03:22 - What happened this week?

13:36 - Industry performance update

16:07 - AQR latest article on managed futures

27:56 - The dual mandate and volatility "targeting"

37:55 - The private equity issue and innovation in Trend Following

43:48 - FT Article from Goldman Sachs about inflation and divergence

49:25 - How turning points impact your overall TF returns

53:17 - The 70 percent rule...and why it works for Trend Followers

56:03 - Hedgehogs vs. Foxes and drought in market liquidity

01:02:30 - Trend following vs. Momentum...can you tell the difference

01:03:55 -...