Michael Covel's Trend Following Ep. 1343: The Value of Fundamentals with Michael Covel on Trend Following Radio
Jun 16, 2025
Dive into the intriguing world of investing as key concepts like the pitfalls of fundamental analysis and the allure of famous investors are explored. Discover why historical data can mislead and how transparency in trend following yields more reliable results. The contrast between market noise and price action reveals compelling insights for traders. Learn about the dangers of arrogance in markets and the importance of diversification in strategies. Covel's anecdotes and advice promise a fresh perspective on navigating the financial landscape.
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Cut Losses And Avoid One-Off Bets
- Cut your losses and avoid betting everything on a single fundamental call.
- Use a systematic approach rather than relying on one-off guru predictions that may be luck.
Price Reacts Faster Than Fundamentals
- Fundamental signals often lag and may already be priced into markets by the time they arrive.
- Trend following trades only on price, removing the need to interpret delayed or ambiguous data.
Fundamentals Invite Conflicting Interpretations
- Different analysts can reach opposing conclusions from the same fundamentals, creating inconsistency.
- Trend following sidesteps interpretation by trading the observable price trend instead.