Our apologies if we offended anyone’s sensitivities with the latest newsletter title, but you know we’re big readers around here (check out our alternative investment reading list) and we just finished reading one of the highest rated investment books on Amazon (4.7 out of 5 stars) titled, “Jackass Investing”.
The book tackles a host of market “truths”, “axioms”, and “words to live by”, systematically taking them apart in a way that warms our heart, being a bit confrontational ourselves when it comes to the traditional ‘buy and hold portfolio’ and ‘futures are risky’ crowd. We couldn’t help but love the take down of what author Mike Dever calls market MYTHS, and without further ado, we wanted to share some of the best parts with you.
Don’t fall for the 20 Market Myths
“Jackass Investing” goes straight at the problem most of us have in crafting a successful investment portfolio, and that is letting preconceived notions like the 20 myths outlined in the book skew our decisions. Like most major life decisions, almost all of our motives are fueled by emotions. Most investors will claim that their reason for investing in a specific market/stock/commodity is based in sound logic and statistics, not just an emotional play. However, this book shows that you can still use statistical data, and be very wrong.
“Jackass Investing” suggests the better way to create a truly diverse portfolio is to ignore the myths force fed to the general public and instead focus on finding multiple return drivers to fuel the portfolio. But before we get into the nitty-gritty, let us say that Dever does more than just talk the talk. He runs a managed futures program and commodity pool utilizing the exact philosophy of multiple return drivers outlined in the book – both of which have outperformed the major CTA indices since inception (past performance is not necessarily indicative of future results). What’s more, the book is not just for educational purposes, but also for building actual portfolios, with the Action Section of the book outlining actual portfolios that attempt to use the multiple return driver philosophy to produce greater returns with less risk than those that follow conventional financial wisdom.
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Want to Read the Full Book Right Now?
Want to get a look at the Action Section of the Jackass website to see specific trading strategies that you can implement in your own portfolio? Shoot us an email at email@example.com to get a free e-book copy of “Jackass Investing”. Now that is a free lunch, indeed.
The performance data displayed herein is compiled from various sources, including BarclayHedge, RCM's own estimates of performance based on account managed by advisors on its books, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.
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