SI316: Solving the "How Much" Trend Following Question ft. Nick Baltas

Today we tackle the most important questions arising from the evolving landscape of systematic investing, focusing on the changing dynamics of asset allocation in the current market environment. Nick Baltas and Niels discuss the implications of rising interest rates and inflation on traditional 60/40 portfolios, questioning whether this approach remains valid. We explore the potential benefits of incorporating trend-following strategies, especially in light of recent market volatility. The conversation includes insights on risk management and the importance of understanding correlation, particularly during downturns. With a blend of empirical analysis and practical advice, the episode touches on the key question of how much investors should allocate to trend-following strategies from a different perspective and encourages listeners to rethink their investment strategies and consider more adaptive approaches to asset allocation.-----EXCEPTIONAL RESOURCE: Find Out How to Build a Safer & Better Performing Portfolio using this FREE NEW Portfolio Builder Tool-----Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.Learn more about the Trend Barometer here.Send your questions to [email protected] please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.Follow Nick on Twitter.Episode TimeStamps:01:28 - What has caught our attention recently?07:37 - Industry performance update09:02 - Reflecting on August and September12:25 - The reversal of the short fixed income trade17:31 - The death of short-term trend following?21:32 - Finding the right trading speed24:15 - Out-performing is a long game27:47 - Its time to move direction29:53 - Can CTA's forecast risk and returns?33:45 - Evaluating models over a long time39:24 - Baltas'...