Muscular Investing

March 2019

Muscular Investing

Diversification Can Actually Make Your Portfolio Rise During Crashes

by Brian Livingston

Using multiple types of assets in a portfolio isn’t just a theory. It works in the real world to cut your losses and increase your gains. • Only in the past few years have all of the major global asset classes achieved representation by low-cost exchange-traded funds... Read More 

Muscular Investing

What Asset Can You Add to Stocks for the Greatest Gain?

by Brian Livingston

Diversification works well in sample cases, but how about in actual trading? In this article, we’ll combine two assets you can actually buy and sell... Read More 

Muscular Investing

Given Two Lemons, You Can Make a Profitable Lemonade Stand

by Brian Livingston

Diversification works in mysterious ways. But does that mean diversifying a portfolio is a hard thing to do? No! It’s actually quite simple. • The problem is that it’s not obvious exactly HOW diversification improves a portfolio’s return. It’s not rocket science... Read More 

Muscular Investing

Why Use Diversification? To Make More Profit.

by Brian Livingston

We often hear that we should diversify, diversify. Why should we do so? For greater gains. But the way to do this is seldom laid out clearly. • The secrets of diversification are not obvious... Read More 

Muscular Investing

Why Is It So Hard to Find Indicators That Always Work?

by Brian Livingston

It’s often assumed that stock markets follow a ‘normal distribution’ — a bell curve — but there’s nothing normal about the way stocks behave... Read More 

Muscular Investing

After Almost 40,000 Backtests, One Strategy Stands Out

by Brian Livingston

In a monumental achievement, backtests of 39,832 trading rules by researchers at Columbia University and Academia Sinica resulted in a big discovery. • None of the gains were statistically significant in ‘mature’ markets such as the Dow Jones Industrial Average and the S&P 500... Read More 

Muscular Investing

How Do You Know Your Strategy Will Work in the Future?

by Brian Livingston

When you find an investment strategy that has worked in the past, how do you know it will work in the future? We may just be overconfident... Read More 

Muscular Investing

What You See in the Market Is Not Always What You Get

by Brian Livingston

We can look and look at data and wind up perfectly comfortable with our observations. But how can we be sure we really understand what we’re seeing? • The human mind has its own way of presenting the external world to us, just when we think we have everything figured out... Read More