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Ep. 268: Gregory Morris Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Importance of Absolute Performance

I've been in money management since the 90s. We have redemptions during long bull markets because of defensive strategy like I manage. It's going to have whipsaws. Every time you have a whipsaw, you're going to leave a few hundred basis points on the table and you'll slowly get bad relative performance. Some people just never learn this. Peter Bernstein said the worst problem with investors is extrapolation. They think the recent past is the way it's going to be forever.

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