5 ms·
This is a ridiculously tiny amount of time to judge performance.
by cardmagic 9y ago
This is a ridiculously tiny amount of time to judge performance.
- bpicolo 9y agoThe market as a whole is up 7%, so really they're down 10%. They lost money in a bull market
- zeusk 9y agoThey're not down 10% and market gains are not risk free. Performance can really only be compared with risk free returns (ie. TIPS). Anything else and you have to look at a bunch of other factors like volatility, VAR etc.
- 1024core 9y agoIndex gains are just about as risk-free as you can get.
- kgwgk 9y agoYeah, indices do never go down...
- whatok 9y agoWow.
- syncsynchalt 9y agoAn actual risk-free* investment would be money market or TIPS. Index funds may be the historically best performing equity investments (when including expense ratio) but no equity investment is risk-free.
- lorenzhs 9y agoThat's what a bull market lasting eight and a half years does to public sentiment :) A crash would make for interesting times, that much is certain.
- vorotato 9y agoThat's wildly untrue, and to the extent that people think that we are at risk of economic collapse.
- icedchai 9y agoYes. You'd have to really try pretty hard to lose money in this market.
- kevstev 9y agonot really. Value based strategies tend to get hurt pretty bad during the tail end of bull markets when euphoria starts to set in, and increases tend to be due to P/E expansion and rosy predictions for the future rather than current performance, and tend to do very well after downturns and things get oversold.
- icedchai 9y agoStill, most value funds aren't losing money over the past 5 months.
- frankc 9y agoThey are probably market neutral. For as many dollars they are long, they are short an equal amount. Therefore it doesn't matter what the market is doing. It matters that their longs outperform their shorts.
- frankc 9y agoWhat the market is doing isn't really relevant to a market neutral strategy, and that is almost surely what they are running. The goal is to make money consistently, whether market is up or down.
- kevstev 9y agoI am on the platform, and yeah they post frequently about looking for market neutral strategies.
- nether 9y agoThis is a ridiculously tiny amount of time to judge performance.
- this_user 9y agoA bull market with pretty low volatility, though. Especially since the early summer. At this point, a 2% daily move in SPX would be a 4 sigma event. Making money from actively trading the market is much harder when ranges are small, and it's easy to die from a 1000 cuts when you don't adapt.
- cardmagic 9y ago4 sigma event assumes normal distribution and its abundantly clear that stock market distributions are far from normal.
- hendzen 9y agoNot for strategies that are trading frequently with 1-3 day holding periods...