The Meb Faber Show
Welcome to The Meb Faber Show, where the focus is on helping you grow and preserve your wealth. Join us as we discuss the craft of investing and uncover new and profitable ideas, all to help you grow wealthier and wiser. Better investing starts here.
Jerry Parker - “To Me it Just Boiled Down to One Question… Will the Big Winners Pay for the Small Losses?” | #35
In this episode, Meb Faber welcomes Jerry Parker, renowned for his role in the turtle trading program. Jerry discusses his evolution from the program to founding Chesapeake Capital, sharing insights on trading strategies, challenges since 2008, and applying trend following across asset classes. He highlights the importance of diversification, contrasts shareholder yield with dividend stocks, and stresses investment discipline. Jerry also discusses managing market behavior, adapting to bull markets, and the impact of robo advisors. He concludes with advice for young traders, emphasizing mentorship and valuable tools.
Key Points
- Trend following involves buying markets that are going up and selling or shorting them as they go down, which can be applied to a wide range of assets including equities, commodities, and currencies.
- Many investors struggle with trend following because of the frequent small losses and behavioral biases, which often lead them to abandon the strategy prematurely.
- Despite its demonstrated performance and diversification benefits, trend following remains under-allocated in most portfolios due to branding issues, lack of understanding, and the discomfort of looking different from traditional long-only strategies.
Chapters
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Transcript
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