Managed Futures: One Perpsective

From my new book Trend Commandments:


Managed Futures: This is a term that describes regulated fund managers who use futures to trade for clients. It is an awful term because it fixates on the instrument (futures), not the strategy. Here’s the dirty little secret: Almost all successful managed futures trading firms use a trend following strategy. The term is often used interchangeably with CTA. Noted radio host and author Dave Ramsey recently had this to say about managed futures:

“The term managed futures is virtually an oxymoron…with managed futures you’re basically betting on the future price of a commodity. What’s the price of gold, or oil, or wheat going to be somewhere down the road? You’re guessing as to what the future will bring, and managing a group of those guesses. What a joke!”

If after reading Trend Commandments you share Dave Ramsey’s view and understanding, I recommend a full frontal lobotomy as your best wealth-building plan.

3 thoughts on “Managed Futures: One Perpsective

  1. There are two distinct and separate populations within the investment industry: the actual coal-face traders (fund managers); and the rest of the middle-man industry of gate-keepers and allocators (laughably referred to as decision-makers). It is most apparent when we land up together at seminars and conferences. We could just as well have been from two different planets.

    The popular classifications of so-called hedge fund strategies seem to have been invented by the latter group, and it is bewildering to them if you somehow fall outside one of those clearly defined categories. We got blank faces for years when we said we are “systematic trend followers”.

  2. Michael,

    Thanks very much for the link to Dave Ramsay’s web site. It truly is an inspiration!!

    He says he’s a “financial expert” and we NEED more of those. I looked up his qualifications and see that he — like you — is an accomplished author.

    However, he’s written WAY more books than you, and on a much broader range of important subjects, including: “Careless at the Carnival,” “The Big Birthday Surprise,” My Fantastic Fieldtrip,” and who can forget, “Battle of the Chores.”

    Yes, this is the kind of financial expertise I’ve been looking for. Forget Seykota and the inner workings of Trend Following…I want to find out what happens to careless kids when they run into pedophile carnies. THAT will get my portfolio jump started.

    And, like you, he offers financial courses. For only $399.00…But wait!!…Special deal…for only $169.00…But Wait!!…EXTRA special deal…for only $99 you can receive a Financial Peace University Lifetime membership. Wow!!! They teach you how to budget and everything!! Your courses don’t even tell people to cut up their credit cards…an obvious deficiency I’m sure you’ll correct before the next group of attendees hits the Trend Folloiwng books for study.

    This guy’s a genuis!! He even owned real estate before losing it all…twice!!…you can’t pay enough for THAT kind of knowledge. Usually I’d have to search out an unemployed former waiter who owned five rental properties during the real estate boom to get this info…now here it is available from dave Ramsey for only $399…$169…$99!!

    Thanks again, Michael!! Hold a spot for me at the head table of your NEXT conference…I’m following everything Ramsey says!!!


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