A Bottom For Trend Following & Managed Futures?- Another Negative Article
Most long term traders know when it hits the news – it might be time to go the other way. There was another article
“Why to be wary of managed futures funds”. The title is correct and the vast majority of traders lose money in managed futures because they do not have a trading plan and have no sense of risk or money management( probably many other reasons as well). Many investors chase performance and buy the highs of commodity trading advisors only to sell their lows. However there are the small group of investors and commodity trading advisors that have compounded money for decades. They are unique and understand that there will always be losses and draw downs. More so the draw down many commodity trading advisors is one of the longest and worst on record.
The link from the article can be found here
What I took most out of the article was the bio of the author.
He has authored or co-authored 12 books, including his most recent, Think, Act, and Invest Like Warren Buffett.
As much as Warren Buffett is a trading legend. I find it ironic that Buffett had 2 50% draw downs in the last decade. How many investors would sit calmly through this and not feel uncomfortable? More so BRKA just recently took out the equity peak from 2007. That is 6 years of being under water. All trading is not easy. All we are dealing with is uncertainty. As much as past performance is not indicative of future performance. The combination of commodity trading advisors leaving the field ( John Henry plus many more), negative returns now for almost 3 years and all the bad publicity…possibly the bottom might be close…Again…anything can happen and this draw down managed futures are in can easily continue.
Past performance is not indicative of future performance