Trying to Make Money All the Time Regardless of Market Movement? Not Wise!

From Bloomberg we see one of the leaders of the Japan Teacher Fund offering this prize bit of happy talk:

“We need to have a certain level of return no matter how the market condition is.”

It’s a race to the bottom with investment leaders such as this manning the joystick. Diversifying into “hedge funds” does not guarantee much–especially if not cognizant of differences in hedge fund strategies! Further, let me be extra blunt: trying to make a consistent level of return all of the time is the kiss of death. The markets don’t have to cooperate with your vision of consistency and they typically don’t. The goal is to make the most money possible over time knowing full well that you might need an all-terrain vehicle to handle the bumps in the road.