Critique my Investment Strategy

Ryan_Futuristics

Well I certainly used to share that opinion ... The financial media's struggled with what these funds are supposed to do, and how to assess them

My belief in long-term value investing has always been my hedge against equities failing - if you'd been invested in the cheapest half dozen regions during the 1999 tech crash, you'd have had a +26% year when everyone else was losing and jumping ship

But still it takes a lot to put all your capital behind a single conviction - we could suddenly move into a bad half-century for value investing, or likewise a bad half-century for passive indexing ... Even legendary funds can have bad stretches

If you've noticed, there's less pessimism around markets this year - we've got QE in Europe, Japan, potentially more from China and the US, while negative interest rates mean the world's literally (almost literally) taking money out the pockets of savers and giving it to investors

And optimism is what you tend to see in the run up to crashes - it's unnerving ... And we're in a very interesting situation, where bonds and property could crash just as hard as equities, commodities are tanking, and cash is being taken from your pockets

This is why I've been so cash-heavy ... But this is exactly the environment alternative investing strategies were made for - and with Yale and Harvard using them as core holdings (while making fantastic returns in all markets) I think any portfolio without a decent alternatives section could find itself very exposed, especially if this whole QE thing starts showing its cracks