Agree with you both regarding long term passive investing but there is an ancient bit of wisdom which needs minimal engagement that has historically protected against the worst of each cycle's downturns - Sell your holding when it falls below its 200 day moving average and buy when it rises above.
I follow a multi asset fund that uses a trend following algorithm like that. The performance has been dire.Originally Posted by uwtc
Are you trading your pension on these cross overs?
Last edited by Montello; 3rd April 2024 at 19:22.
Relative to? I'm referring specifically to stocks. I don't know if it works for any other asset.
I assume the logic would apply to a stock index just as it would and individual stock?
Seems very simplistic to me.
Yes, you said your fund was multi-asset which could include bonds/commodities/property etc. So what's the dire performance relative to?
I don’t want to name the fund but it’s given 0% over 7 years, pick your benchmark.
It does include bonds, commodities and REITs. It would have done ok without the trend following function.
REIT's are illiquid so I can't see how the fund can follow the 200 day rule particularly accurately when the proverbial hits the fan but as I'm not in a position to see the data I shall take your word for it.
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