From WSJ this week:
“Hedge funds known as trend followers – which chase market movements, rather than making fundamental investment decisions – also appear to have been hurt on bad trades.”
Notice the not so subtle slap against trend following above. It’s the cavalier and reckless sounding “chase” versus the wise and stoic sounding “fundamental investment decisions.”
Also, I notice the emotionally charged use of “bad trade.” What was the bad trade? A preset loss to take that trend followers knew about in advance of ever entering the position?