Follow, Don’t Predict

This could end up being right, or wrong, but it sure seems (based on all available trend following research) that it would be smart to refrain from drawing conclusions about where the market will head next:

Shout to @ritholtz.com.

4 thoughts on “Follow, Don’t Predict

  1. So…I’m guessing that the three (3) forward time projections are the possible length of bear market and their bottoms??

  2. For the average Joe six pack American investor/trader, a simple trend following system could be:

    I will own an S&P500 index fund and add $200/month as long as the 50 period moving average is above the 200 period moving average. DONE!

    Nothing fancy, just a simple strategy will do the trick…

  3. That’s real purdy…its got color and everything. Reminds me of Christmas. I wouldn’t invest 3 cents based on it, but I might frame it and donate it to a kindergarten class.

  4. Looking at this chart is just giving me a headache. I have no idea what is going on. Sorry Michael but I think you overestimate the intelligence of your readers 🙂

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