Ep. 4: Mike Shell Interview with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Fish Market's Hypothesis and the Capital Asset Pricing Model
Most investors simply do not those asset allocation models, no matter how you do it. The Calplacic pricing model separated those two risks and what they say is that, well, if you buy enough things, diversification,. whether it be enough stocks or whether it beEnough stocks then you can almost pretty much eliminate the individual risk. Now here's the problem though. If you've got 10 things and you know you're going to get out, if each individual one of them goes down 10%. You're going to lose 10% if they all go down roughly. Give or take a few percentage of slippage, but you know, you'll lose 10%. Do you see
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