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- 11/13/2025 at 8:47 am in reply to: Momentum vs. Reversion to Mean and how it impacts being diversified/hedged #87933
jmont42
ParticipantThank you for your reply. I’m a fan of logical invest and the top 3 strategy but I’m not a fan of being 50% in any one asset. This year it has worked out but over time, I’ve noticed when the market crashes and there are margin calls…gold gets sold just like everything else. I still use the strategy, I just limit my allocations based on my own risk tolerance. I looked at the CAOS etf and it looks good as a partial substitute hedge. I really appreciate you taking the time to respond and giving me an alternative that fits my risk profile…logical invest is a great service and a great community of investors!
09/21/2025 at 5:20 pm in reply to: Momentum vs. Reversion to Mean and how it impacts being diversified/hedged #87738jmont42
ParticipantHi, I think you might be better off posting a new question because I’m not sure Frank or anyone at the LI team will see this post. I got a notice because I’m the one who originally started this thread but it’s been inactive since July. Good luck with your search.
07/24/2025 at 5:29 am in reply to: Momentum vs. Reversion to Mean and how it impacts being diversified/hedged #87517jmont42
ParticipantThanks Frank for taking the time to respond. I understand what you said about the benefits of momentum and it gives me more confidence to trust the strategies. However, you didn’t really respond to my concern about the top 3 strategy being almost 50% in one position. It has worked out great and it’s hard to argue with success, but I’ve always been taught that diversification was key and it’s not good to be over allocated to any one asset. Any thoughts? Thank you.
jmont42
ParticipantAll subject to change but if the dollar has peaked, precious metals and emerging markets might do well. If the fed is close to being done, bonds might outperform. Also, value and dividend plays seem like a safer bet. Personally, I’m 80% in T-Bills and trying to trade tactically with the rest.
jmont42
ParticipantHi StefanM, thanks for taking the time to reply to me and for the recommendation to purchase Quanttrader. I’m going to give it a try. I like the idea of taking the emotions out of the equation and of hedging especially after a ten year bull run.
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