So far, we have been discussing a variety of ways to build portfolios and harvest returns, but we haven’t really addressed a fundamental aspect of how we think about the portfolio construction. Even though most of us like to think that we will rise to the occasion in the face of a challenge, the reality is that we will most likely sink to the level of our training during those difficult times. In the world of investing, that ‘training’ can be thought of as establishing sound, economically viable and time-tested rules when things are calm (and emotions are in check) and executing them relentlessly through thick and thin. On this 9th day, we get down to what it really means to be a systematic investor.
Podcast series re-posted with permission from Resolve Asset Management. Click here to see the original post.