“Listen, I surrender, you beat me Mr. Market, now where do you want to go?”

Feedback in:

Hey Michael,

Recently I started listening to your podcast and have been researching a bit of what you have been saying. I find your podcast I be extremely informative. I think sometimes it’s the kind of kick in the ass the public needs so I am glad you are out there speaking your mind on a lot of important topics.

I did find a lot of research verifying that trend following is a valid strategy and one where a lot of people have made a decent amount of money. However, I couldn’t find very good information as far as annual returns over the long-term goes. Can you send me some of this?

The trend following system, in general, makes a lot of sense. Trends happen, obviously. Those who want to be a passenger can be and can make a lot of money. Intuitively I like the idea. It appeals to my sense of logic. You’re not trying to figure out anything. You’re merely saying, I don’t know where this will go, it seems to be going somewhere, and you buckle your seat belt. The seat belt is the stop-loss in this analogy.

Anyhow, just wanted to send a kudos your way. Keep up the good work. Would like to hear you talk more about a lot of people that are in boats they never thought they’d be in. For instance, in my case, I got myself into a lot of debt via students loans. It’s not an easy ride in this economy to have a degree no one cares about (I have an MBA). Agree with the entrepreneurial lifestyle. I worked a dead-end job for a bit of time and now am ready to move on to something new and try to get out of the “zombie-like” mindset.

I have subscribed to a while to value investing and found lots of research to show it does work. The problem with value investing, compared to trend following, is that it takes a tremendous amount of work to try to figure out something the market doesn’t already know or find where the market differs from the underlying value of a company. Trend following seems to hold up the white flag and say, “Listen, I surrender, you beat me Mr. Market, now where do you want to go?”

Regards,
Larry H.

Thanks! Data? See.

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You might like my 2017 epic release: Trend Following: How to Make a Fortune in Bull, Bear and Black Swan Markets (Fifth Edition). Revised and extended with twice as much content. Out April 24th 2017.