Bond Whipsaw

Times like yesterday and today are great examples of the downsides of being an active investor.

For example, I was bond heavy going into yesterday. Bonds did terrible. Algo exits bonds. Bonds do great today. Algo enters bonds again. You can of course change the asset and the timeframe for any number of things and the general idea is the same, whipsaw will happen.

This is one of the many reasons why I think most people would be better off being passive investors. However, I think there is a place for active investing, especially when using leverage. This particular time it did not work out, but I do believe the algo rules are worth sticking to despite the fact that there are many days just like this.

Patience is a Virtue:

My Roth IRA:

Leverage and Patience:

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