Synopsis: Today on the podcast, Michael Covel opens up with a monologue and closes with an interview of him covering trend following ‘fundamentals’. Covel opens up by discussing how the phrase “black box” is used to marginalize those who practice trend following trading. Next, Covel plays an interview clip from James Simons, the chairman of Renaissance Technologies, who generated for himself over 14B USD all through models. The second part of today’s episode are highlights of Andrew Horowitz’s interview with Covel–an interview *of* Covel this time. Covel and Horowitz discuss the TurtleTrader story; black boxes, emotions, and computers; what trend following is from the most basic level; the question of “why”, and why it might not be as important as many people think; finding which markets to enter; finding the optimal bet size; and how Fed intervention plays into the market. Want a free trend following DVD? Go to trendfollowing.com/win.
I have a friend here who subscribes to [name]. I tried their trial membership but didn’t continue. Now I get all this junk. Your stuff ain’t junk at all and I love how prolific you are with your podcasts. It’s only a matter of time before I buy your Trend Following system to add to my [name]. Funny thing is I discovered you through [name] daily reports. One of the articles from [name] Money Management mentioned your name. Then I bought and read all of your books.
A followup email:
I forgot to mention the main point of my message: There’s so much junk out there people have no idea what the real stuff is. For example, I personally surveyed more than 300 “advisors” last year and not one, that would be zero, had heard of Michael Covel or your books. Just one of them had heard of [name]. You see, at all these industry events, mainly for CE credits, I casually ask the advisor sitting next to me “what’s your plan for the next bear market? Or Black Swan Event?” Absolutely no clue from any of them, except this one guy who knew about [name]. That’s one out of more than 300 Michael. These people are so called “Advisors”. Selling nothing but MPT, the “Great Intellectual Fraud”. In Canada, that’s about a Trillion dollar fraud. I’m sure glad I’m no longer with a bank owned brokerage. Otherwise this kind of message would be a no no. As it is [name] is owned by a $100 billion mutual fund company, whose compliance people will never approve of what I do. The beauty of being 100% self-employed, merely telling the truth, and having Branch Compliance people who are open minded. After all results Speak.
Synopsis: Michael Covel speaks with Kathryn Kaminski on her second visit to the podcast. Kaminski is Director of Investment Strategies at Campbell and Co–the famed CTA started by Keith Campbell. Today, Kaminski outlines her new whitepaper, specifically diving into correlation among traders (CTAs). Covel and Kaminski discuss correlation between fund managers and strategies; the media’s misrepresentation of systematic strategies; diversification in the CTA and equity world; and why one trend following strategy is similar to just one stock. To view the paper see: www.campbell.com. Want a free trend following DVD, go to: www.trendfollowing.com/win.
Since I’ve been following your books and podcasts, I view [promotional] email blasts (I must receive 10-15 a day) from the investment community with a whole different attitude. I used to read them with the eagerness of a novice seeking wisdom at the master’s feet. Now, not so much. I’ve been a financial advisor for 25 years and I’ve grown so very tired of the “I wasn’t wrong, I was just early” attitude taken by Wall Street research departments and pundits. The stock market will indeed correct 10%, maybe 15% or 20%, but waiting for [that] while our currency implodes seems not only foolish but downright arrogant. It’s not so much what is [in the promo fluff] that bothers me but the implied subtext that I find offensive and so very wrong. Thank you Mike for all you do – keep shining the light. You are helping me help hundreds.
The system plans to drip you dry if “income” is your goal:
HSBC has become one of the biggest global banks to say it will begin charging clients on deposits in a basket of European currencies.
The decision underlies the extraordinary measures banks are taking to prevent their profit margins being crushed in the record low-interest rate environment.
HSBC has written to other banks to warn it will start charging them for deposits in euros, Swiss francs, Danish krone and Swedish krona — all currencies of countries that have negative interest rates — at its UK, German and Hong Kong operations from this summer.
It is the first UK bank to announce such charges following similar announcements from Swiss, German and Nordic institutions.
“HSBC charges banks for deposits they hold with us in currencies where negative interest rates apply,” the UK-based lender said in a statement on Tuesday. “Banks affected have been notified and we continue to monitor the situation.”
Synopsis: Michael Covel speaks with Gavin Serkin on today’s podcast. Serkin has been writing about developing economies for the better part of two decades as the Editor of Portfolio International magazine and more recently as the head of the emerging markets international desk at Bloomberg News in London. Serkin led Bloomberg’s coverage of the credit and derivatives markets from 2004 to 2008, winning the Society of American Business Editors & Writers’ Best in Business Award and the Society of Professional Journalists’ Deadline Club Award. Frontier, his new book, is a vivid travelogue of ten countries with the potential to lead economic growth in the coming decade. Covel and Serkin talk about safety issues in frontier lands; men and women in frontier countries; global brands and the direction we’re headed; going through Vietnam with Mark Mobius; Myanmar and violence; relations between the US, China, Vietnam, and Myanmar; Nigeria’s economy and where it’s headed. For more information on Gavin Serkin, visit frontierfunds.org. Want a free trend following DVD? Go to trendfollowing.com/win.
My name is Jason and I am an avid listener to your podcast. I have a 13-year-old son who I would love to guide toward having the kind of economic freedom and lifestyle you talk about on your podcast. I am a dentist and am not familiar with what it takes to make it in the world of finance, entrepreneurship, and investing. I would be very interested in what educational goals and life experiences you would encourage a smart, 13-year old young man to go after given your valuable insight having been highly successful yourself and having interviewed many highly successful people. Would you take a certain course of study? Would you start a business or go into a certain profession? Would you work in a corporation to learn the ins and outs of the world of business?
It is a little overwhelming when trying to figure out how to steer a young man, but I guess the bottom line is this: What would you plan to do from 13-21 if you had to do it all over again? Any thoughts you may have would be greatly appreciated. Again, the podcast is awesome and keep up the great work!
That list will keep someone busy for a few years. I would start a business or fund.
Thank you very much for responding to my email. It is a real battle these days to keep kids from being totally absorbed into the world of endless social media distractions on one hand and also being caught up in the political agenda the schools are up to on the other.
That looks like a great reading list and it definitely will keep him busy for a while to come! I also appreciate your advice to start a business or a fund also. Hopefully, those resources and direction will give him a chance to really know what makes this world turn. Again, the podcast is wonderful, and I truly appreciate your email response.
Pricing for trend following systems, risk management, trader psychology training and black swan strategies. Absolute return systems and education for new traders and established pros. Thousands of clients across 70+ countries. Testimonials.
Pricing for trend following systems, risk management, trading psychology and black swan strategies. Absolute return systems and education for brand new traders and established pros. Thousands of clients across 70+ countries and territories. Client feedback.