New Trend Following Paper

by | Aug 21, 2012 | Trend Trading | 0 comments

Hat tip to Mebane Faber for this one: The Trend is Our Friend: Risk Parity, Momentum and Trend Following in Global Asset Allocation

One of the conclusions:

Perhaps the greatest benefit of trend following is the reduction in volatility that accrues to this approach by being out of markets during substantial periods of decline. This in turn leads to huge reductions in the maximum drawdown an investor would experience.

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