Reverting to the mean can be up too...

Week 27 - Weekly Equity Update

~5360 is our new decision point.

Factor investing is an investment strategy that targets specific drivers of returns, known as factors. Common factors include value, size, momentum, quality, low volatility, and yield. My non-quant brain picks two simple baskets. Which you all hopefully know by now.

QQQy or IWMy.

This is shorthand for whether this ticker tends to trend or to mean revert.

Will the market crash? At some point yes.

Does it help that people constantly predict that it will crash? No not really.

All kinds of words and stuff have been written about the underlying components and what they tell us about the market's health.

Remember when everyone was saying the same thing in April?

The problem with mean reverting assets is that the mean may be below or above the current level.

People may not like it but some weak things might have to go up because they have to mean revert…

Imagine if we used data to show us things and not pick the data that shows us what we want to see.

Sorry, the two charts are off on the time frame but the point remains. IWM is in a place where it is more likely to be IWMy.

Will it be short-lived? Who knows. We cannot ignore it just because Xitter tells us a crash is coming.

The portfolio closed equity return is +18.2%

Current open equity equals +22.3%

I am a random dude on the internet none of this is trading advice this is me sharing my portfolio and trying to share how I think about things. Do your own research and where possible share it with the group.

Every day is a school day.