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Decoding Market Cycles and Sharp Ratio: A Deep Dive With Meb Faber

Lead-Lag Live

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The Risk Adjusted Chart Ratio

In general, these cycles play out over much longer periods and regimes than I think people are prepared for. The best sharp ratio strategy you can come up with is the option selling funds where they'll sell straddles. They make like one or two percent a month consistently every month for a few years and then they lose like 80 percent. It's murdered in the 60 40 portfolio. Until as last year showed, it was pretty stinky year for 60 40, one of the top five worst ever.

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