Ep. 1199: Rock Your Mind with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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How to Measure the Size of a Company
Generation 1 TAA simply looked at earnings yield on stocks and the yield on treasury bonds compared to the two. For a long time, that simple approach worked beautifully. The normal valuation since 1990 has been different from the normal valuation before the 90s. It turns out it doesn't matter which measure you use, any of these measures adds about one and a half to two percent a year going back 50, 60 years.
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