Some of you are really smart, but at the same time extremely dumb and lame. Your skills aren’t transferrable and your methods cannot be passed onto your children. If your investment process isn’t repeatable, it isn’t relevant, and it certainly isn’t desirable for investors who require a methodology to place stakes.
Machine learning is going to ravage the Investment Advisory industry over the next two decades, especially displacing those who refuse to use tech to manage their investments. Gone are the days when an advisor can simply show his clients a bunch of useless charts and get money to invest in those dog-shit stocks with fleas.
Money is to be managed with a plan, a process that is measurable and could be passed onto future generations.
This is exactly what I am doing in Exodus Quant — and I am happy to announce we fucking ripped off the skull of the S&P 500 and ate its brains this month. It was a meal that was as delicious as it was grotesquely violent.
Here was the portfolio for May.
This portfolio yielded a return of ~4.5% — 230bps better than the SPY.
We’ve beaten the SPY every single month of the year and will continue to do so — because it is a better process — rooted in logic and fundamentals.
My new portfolio will be published inside Exodus tomorrow morning.
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It may already do so but you can generally increase your return by going with the stronger (for longs)/weaker (for shorts) of the three: SPY, IWM, DIA.
It has worked for me the last few years in trading my IRA through Rydex Mutual Funds which allows unlimited trading as well as an intraday trade at the 10:45 AM price (and a subsequent out the same day at the 4:00 PM price).
It would obviously work with the etfs so long as you have the discipline not to over trade (and most don’t).
Lot of plebs got mad when I tweeted thoughts like this.
I am sure it can be done that way. Everyone can skin the cat as they prefer. With returns of ~9% for the year, I’m good.