Ep. 1165: Big Events with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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Trend-Following in the Middle of a Crisis
For markets to move in tandem, there has to be a common perception or consensus about economic conditions that drive it. A major event such as the Russian debt default of August 1998 will often accelerate existing trends already in place. Anyone who accepts a small risk of losing everything will lose everything sooner or later. The ultimate compound return rate is acutely sensitive to fat-tails.
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