How short-sellers can get hurt in a bear market

This is a cautionary tale about the importance of return objectives and risk control. Regular readers know that while my trading model has not be perfect, it has been quite good for swing trading purposes.   So far in the month of October, my main trading account is up 7.1%, while the SPY is -7.1%....

Will diversified portfolios be doomed in the next recession?

Preface: Explaining our market timing models We maintain several market timing models, each with differing time horizons. The "Ultimate Market Timing Model" is a long-term market timing model based on the research outlined in our post, Building the ultimate market timing model. This model tends to generate only a handful of signals each decade. The Trend...

Rebalancing your portfolio for fun and profit

The standard practice among portfolio managers is to establish a rebalancing discipline for their portfolios. A typical process would involve the following steps: Determine the target asset mix, which could change depending on market conditions. Re-balance if: The asset mix weights moves more than a certain percentage, e.g. 10%, from the target weight; or Periodically,...