Muscular Investing

February 2019

Muscular Investing

The Top Six Investment Advisers All Have Major Tracking Error

by Brian Livingston

Examining the top gurus of the last 18½ years reveals numerous periods — 1, 2, and 3 years long — when they badly lagged the market. Could you wait? • Every superior investing strategy enhibits ‘cold streaks’ as well as ‘hot streaks... Read More 

Muscular Investing

Tracking Error is the Challenge All Investors Must Meet - part 4

by Brian Livingston

Beating the market in every up AND down month is a ‘yeti portfolio’ — a myth, a dream. Today’s computerized traders would overgraze any such system. • Every strategy that outperforms the S&P 500 over complete bear-bull market cycles MUST have years of underperformance... Read More 

Muscular Investing

Tracking Error is the Challenge All Investors Must Meet - part 3

by Brian Livingston

The Dow Jones Industrial Average has beaten the S&P 500 for decades. But people love the S&P. Why? Because they don’t know how to use tracking error. • Over the past 21 years, the DJIA has delivered 32% more gain than SPY. But traders shun the Dow... Read More 

Muscular Investing

Tracking Error is the Challenge All Investors Must Meet - part 2

by Brian Livingston

When does a tortoise beat a hare? When it’s an investing strategy that lags the market for months or years but keeps chugging along and wins in the end... Read More 

Muscular Investing

Tracking Error is the Challenge All Investors Must Meet

by Brian Livingston

When your system lags behind the S&P 500, what do you do? Jump to something else? Staying the course with a working long-term system is a better plan. • Every mechanical investing formula has tracking error: times when it underperforms whatever index you care to use... Read More