How to always beat the S&P 500

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Gaddock's picture
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It seems to me that the smartest guys in the world that have been crushed by the market in the last year typically compare their performance to the S&P and the ones that consistently have better numbers are considered to be little tin gods.
 
It almost seems that the goal is to actually beat the S&P not maximize profits necessarily.
 
I can beat the S&P all the time without exception. I'll bet many of you probably just had a negative response to that statement.
 
How would/could one always beat the S&P every single time?
 
Any takers?

Ron 14's picture
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Fund managers trying to beat the S&P are trying to outperform by buying and holding equities. Trading options and comparing that to buy and hold is comparing apples to oranges. It is two different animals.

troll's picture
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I can beat the S&P with a baseball bat.
 
As long as I can aim well, I can beat it every single time!

Gaddock's picture
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Ron 14 wrote:
Fund managers trying to beat the S&P are trying to outperform by buying and holding equities. Trading options and comparing that to buy and hold is comparing apples to oranges. It is two different animals.
 
First I made no such comparison. I use options a lot but I'm not a one trick pony. What is the diff? You made an assumption that I wasn't going to use equities. Why would it matter what product it was if you always beat the S&P without exception?
 
Perhaps I should change the question too. Do you think you could ALWAYS outperform the S&P? If so ... how?

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The benchmark for US Equity investing is the S&P. That is what fund managers are compared to and that is what many compare their investments to. I know you are not a one trick pony, I never said you were, but fund managers and most advisors are not trading anything. They are putting together long term investment plans to help clients reach long term investment goals. Is someone who owns a Mcdonalds franchise and turns a 15% profit each year also a star investor because he beats the S&P each year?

Gaddock's picture
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Ron 14 wrote: Is someone who owns a Mcdonalds franchise and turns a 15% profit each year also a star investor because he beats the S&P each year?
 
Well now you truly are talking apples and oranges. Lets limit this to things you need a series 7 to buy and sell.
 
Do you think you can always beat the S&P? Long term, Short term and in between?
 
If so I would be very interested and appreciate your, or anybodies, methodology to do it.
 
When I tell you how I would do it if that was my goal you'll probably find it amusing at just how simple it is. Sometimes things are sooooooo simple we overlook the obvious.
 
What would you think of a money manager that beat the S&P 10 tears out of 10? I'll bet that guy would be considered to have some serious bragging rights yes?

Ron 14's picture
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-No, I cannot beat the benchmark every year and it doesn't matter if I do or not
-Yes, managers who beat the benchmark consistently are considered to be at the top of their profession
 
FYI -You do not need a Series 7 to execute options, stock, or mutual fund trades

Gaddock's picture
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Ron 14 wrote:-No, I cannot beat the benchmark every year and it doesn't matter if I do or not
-Yes, managers who beat the benchmark consistently are considered to be at the top of their profession
 
FYI -You do not need a Series 7 to execute options, stock, or mutual fund trades
 
Semantics & you know what I mean. Yes YOU can easily beat it always.
 
Would you like to know how?
 
I'm curious, if beating the S&P or some such is not relevant to your practice what do you use to gage success in your clients accounts?
 
I know I was a prick when we first began to reply to each others posts ...
 
Sorry
 
The tone of this discussion is not like that at all from my side. I truly am interested in your thoughts and best practices should you decide to share them with us.
 
That goes for everyone that want to chime in.
 
Here is the specific question
 
A guy has 5 million and will give you 1% as long as you consistently beat the S&P. You're not allowed to take risk that exceeds the implied risk of the S&P, within reason. IF the account is off by 2% at anytime you loose the account on the 2% tick.
 
What would you do?
 
ALL ANSWERS FROM ANYBODY AGE GREATLY APPRECIATED
 
 

Ron 14's picture
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The average investor trails the S&P by about 7% over time because of constantly overreacting at highs and lows so I follow Nick Murray's recommended value prop:
-Will the experience of my firm and myself provide a better return than the investor on their own by 1% or more
-Will my guidance save them from making the big mistake (selling out at dow 6500) and sticking with their plan in bad times
-Will having a trusted advisor save them time, energy, and worry vs doing it themselves
 
I ask the client are any or all of these things worth 1% to you ? If yes welcome, if no, go back to fidelity or CD's and continue to chop yourself up

Gaddock's picture
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I added more to the post you responded too FYI. How to simply and consistently beat the S&P?????
 
This answer is very anticlimactic.
 
Put all the $$$$ in the SPY and each month sell a covered call that is in the following month for expiration i.e. a May expiration if we did it today. The Delta has to be 0. A delta technically can't be zero, but, a zero Delta means that the probability is in basis points.
 
So using todays number for fun we would be selling the May 103 for .11.
 
If we did this for one year the Calls would give us 1.6%. So we beat the S%P by just over a point and 1/2.
 
How simple is that?
 
So for the purpose of prospecting/talking shop with prospective clients. Set up an account, make it small for your sister or some such, buy 100 SPY. Now you can tell people that one of your more conservative strategies has been back tested for 20 years and is currently exceeding the returns of the S&P.
 
I know it sounds cheesy but I did it and some are greatly impressed by it. AND it's 100% true and without exaggeration.

Sam Houston's picture
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Your forgetting about trading costs.

Ron 14's picture
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And if you go through the strike, you stop yourself out, and the Index keeps gaining.

Gaddock's picture
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Sam Houston wrote:Your forgetting about trading costs.
 
This is in a wrap account that is paying the broker 1% as previously stated. There are no additional fees for any trades.

Gaddock's picture
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Ron 14 wrote:And if you go through the strike, you stop yourself out, and the Index keeps gaining.
 
IF we were lucky enough to have a black swan enter the picture and goes to a 99%+ probability of success we simply roll the position and 9 out of ten we would get a credit on the roll to add to the till.
 
Out of literally thousands of trades I've done during my 19 month tenure we've not given up any stock we didn't want to.
 
God I love my job. With all the 'stupidity liquidity' bubbles floating around it's easy to take their money
 
As I said in another post. Gaming theory is significantly more useful than anything the training department taught us.

Ron 14's picture
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Everything your saying makes sense. The thing is it only takes once for that to blow up. There used to be a huge NDX speculator who would sell out of the money call spreads and put spreads one month out.  He did it for about 3 years straight in huge quantity, selling both spreads at the same time. If the futures ever approached the strike he would roll it, but he got caught once where it just kept running away from him and it was game over. Part of it was because of the size he was doing, but it was also because he kept going back to the well and nothing is a lay up forever.

Gaddock's picture
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I hear what you are saying. Then lets limit it to two trades per year.
 
 

Sportsfreakbob's picture
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All pretty esoteric. Try to get a client to understand what you are doing.Bill Miller beat the S&P every year....till he didnt. A lot of people bought his fund when he was "at the top of his profession". The rest is history.I tell cients that i dont care about the s&p 500 - i use the s&p 500 to put their performance in context, but i care more about whether or not they are on track to meet their goals.As far as investing, i tell them that my goal is to reduce volatility and i will probably outperform in down markets, and underperform in up markets.

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Sportsfreakbob wrote:All pretty esoteric. Try to get a client to understand what you are doing.Bill Miller beat the S&P every year....till he didnt. A lot of people bought his fund when he was "at the top of his profession". The rest is history.I tell cients that i dont care about the s&p 500 - i use the s&p 500 to put their performance in context, but i care more about whether or not they are on track to meet their goals.As far as investing, i tell them that my goal is to reduce volatility and i will probably outperform in down markets, and underperform in up markets.
 
I totally agree

Gaddock's picture
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Sportsfreakbob wrote:All pretty esoteric. Try to get a client to understand what you are doing.Bill Miller beat the S&P every year....till he didnt. A lot of people bought his fund when he was "at the top of his profession". The rest is history.I tell cients that i dont care about the s&p 500 - i use the s&p 500 to put their performance in context, but i care more about whether or not they are on track to meet their goals.As far as investing, i tell them that my goal is to reduce volatility and i will probably outperform in down markets, and underperform in up markets.
 
This was more thinking out loud and looking for other reps thoughts. Making money is an art form, IMHO, and there are more ways to work the market that my imagination can fathom. Trying to sell this to a client would be ridiculous. As for my current clients about half don't have a clue how I keep making their account balance go up each month. Their comfort level is a facet of their belief that win loose or draw I truly have their best interest at heart, which is 110% true. The other half actively helps me look for trades. I teach them how to do it and go over each trade and place the order.
 
"i tell them that my goal is to reduce volatility"
 
I agree BIG TIME hence my fixation on market neutrality models.
 
Read up on arbing convertible bonds "convertible arbitrage" I think you will be blown away about how you can almost remove volatility and get around 9%+ depending on how your firm's cost or the payment of interest. Bread and butter models for hedge funds. They use technology stocks for the most part as they don't usually pay dividends. Which brings me to another GREAT swing trade. Find convertible bonds that are being called get in and sell on the short squeeze.
 
God I love playing this game.

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Gaddock wrote:Ron 14 wrote:And if you go through the strike, you stop yourself out, and the Index keeps gaining.
 
IF we were lucky enough to have a black swan enter the picture and goes to a 99%+ probability of success we simply roll the position and 9 out of ten we would get a credit on the roll to add to the till.
 
Out of literally thousands of trades I've done during my 19 month tenure we've not given up any stock we didn't want to.
 
God I love my job. With all the 'stupidity liquidity' bubbles floating around it's easy to take their money
 
As I said in another post. Gaming theory is significantly more useful than anything the training department taught us.I LOL'd. That struck me funny. Good info, but 19 months? I'd be careful who I bragged to about that.

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 Gaddock -  I cant believe you think you have actually found some kind of "unknown" system to make money for clients with little or no risk. Those opportunities are not out there. They may present themselves month to month or year to year, but they wont last for ever and they aren't something you can hang your hat on.

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Gaddock wrote:I added more to the post you responded too FYI. How to simply and consistently beat the S&P?????
 
This answer is very anticlimactic.
 
Put all the $$$$ in the SPY and each month sell a covered call that is in the following month for expiration i.e. a May expiration if we did it today. The Delta has to be 0. A delta technically can't be zero, but, a zero Delta means that the probability is in basis points.
 
So using todays number for fun we would be selling the May 103 for .11.
 
If we did this for one year the Calls would give us 1.6%. So we beat the S%P by just over a point and 1/2.
 
How simple is that?
 
So for the purpose of prospecting/talking shop with prospective clients. Set up an account, make it small for your sister or some such, buy 100 SPY. Now you can tell people that one of your more conservative strategies has been back tested for 20 years and is currently exceeding the returns of the S&P.
 
I know it sounds cheesy but I did it and some are greatly impressed by it. AND it's 100% true and without exaggeration.
 
Damn it.  I didn't get a chance to respond to this before you answered it.  That is true, historically, this strategy has yielded about 95% of the returns of the S&P with about 50% of the volatility (transaction costs ignored).
 
However, to be fair - you asked how to GUARANTEE to ALWAYS beat the S&P...this strategy will likely do it over time, but there will be times where it does not; especially once you consider transaction costs.
 
Careful how you word this one.

Sam Houston's picture
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Here is the specific question
 
A guy has 5 million and will give you 1% as long as you consistently beat the S&P. You're not allowed to take risk that exceeds the implied risk of the S&P, within reason. IF the account is off by 2% at anytime you loose the account on the 2% tick.
 
What would you do?
 
ALL ANSWERS FROM ANYBODY AGE GREATLY APPRECIATED
 
 
 
You are giving me 2% leeway?  Easy money, and I would have over $4.5mm in cash.  Constantly roll the forward S&P contract.  Leave the remaining 90+% in cash earning interest.  Far more efficient than using SPY (slippage) and deep out of the money calls (liquidity, large bid ask spreads).

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Sam, more than one way to skin a cat!!
 
Ice,
It's in a wrap account, no transaction fees.

Gaddock's picture
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Ron 14 wrote: Gaddock -  I cant believe you think you have actually found some kind of "unknown" system to make money for clients with little or no risk. Those opportunities are not out there. They may present themselves month to month or year to year, but they wont last for ever and they aren't something you can hang your hat on.
 
You're kidding right? Do you think that I have such an ego as to believe I've done something nobody else has? As I said before, that trade you are speaking of is called a Reverse Conversion. I'm not hanging my hat on anything. BUT I will take the trade when they present. My overall strategies are built around a core position of long term buy and hold blue chips that are enveloped by options. Any other opportunity that meets or exceeds my methodology and risk parameters, I take that trade. 9 out of 10+ of those positions end with the desired outcome giving me one hell of an edge. 
 
Would you feel better if it was one of the managers you use doing it? Morgan Stanley takes these trades and cuts them into strips and sells them like hotcakes. Getting beyond the huge haircut would it make you feel it's real if a firm does it and keeps the larger part of the profit?
 
The fact of the matter is, speaking of the trade in the other thread. I find them everyday. Current positions include X, GM, C, MGM, GE & CBI. All expire within 90 Days. I've even given you the numbers on several of them. I guess maybe you think I'm making this up. Cool by me. You can see the numbers were there on the day I posted it. As long as there are no special divs paid I'm gold on all of them. My clients are feeling special and getting much more than their previous broker gave them. They are my advocates and actively promote me. I'm now landing foundations instead of a little cold call IRA.
 
Kind of sad you cant get your head around taking advantage of anomalies, you yourself said you cant shoot holes in it and that it's free money. Why not take the trade?
 
Analysis paralysis? To good to be true? Yet there it is for people like me to bang out large returns none the less.

YHWY's picture
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Are New Broker training programs these days teaching kids to be asset gatherers or fund managers? Or are those six months enough time to master both now?

Wasabi Avenger's picture
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YHWY wrote:Are New Broker training programs these days teaching kids to be asset gatherers or fund managers? Or are those six months enough time to master both now?

Gaddock's picture
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YHWY wrote:Are New Broker training programs these days teaching kids to be asset gatherers or fund managers? Or are those six months enough time to master both now?
 
So ahhh are you saying you have no strategy or thoughts that can build upon the point of this thread?
 
Don't feel bad, not many do. I suppose that's why mutual funds are so popular.

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My point is that, after 19 whole months, you don't even know what you don't know yet.

Gaddock's picture
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Point taken. Safe to say I'm not a spring chicken.

They say that a person can be an expert on any subject after 5000 hours of study. If you consider insurance sales (employee benefits) a financial product and prop trading for 2.5 years after being trained to work arbitrage models pertinent, I've been dealing with such products for 20 years. I'm not claiming to be an expert but I am professional. I've put in far more than 5000 hours of study as well.
 
Point is I can see a good trade when it appears and will pull the trigger. I'm beyond disgusted with managed money after their terrible performance over the last twelve months. Maybe it's short lived but I've been making rather large profits even through the crash.
 
That success can be measured I believe by my production & AUM and the amount of referrals received.
 
Enough about me ..... HOW WOULD YOU ATTEMPT TO BEAT THE S&P CONSISTENTLY????

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I am going to look again at the fund managers I mentioned to you, but I am almost positive that options are not a part of their model at all and are not in the prospectus. I admitted to you that if what you are saying is true and the entire trade is delta neutral it is a money maker. I just don't think those opportunities will always be out there and as your book builds you will need to do more and more size that just won't be available. That is my opinion. And as I said, my business is not about beating the S&P and I don't believe many rational advisors are building their practice in that manner.

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It's not sexy, but simple dollar-cost averaging will consistently beat the benchmark, but this assumes that the investor does not have a large lump-sum to invest initially.  I'll give you "consistently", but am glad you backed away from "always".  I've yet to see "always" hold true with market-based investing.  I do appreciate your intelligence and confidence, though.

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Not sure if this was addressed in the thread, but if you are able to use any asset class, I think using generally higher returning asset classes (vs. S&P), and some alternative asset classes to reduce volatility will do it most of the time.
 
You use small cap value, large cap value, international, sprinkle in some real estate, gold, other commodities, managed futures, global fixed income.  Now, problem is, this would have destroyed the S&P the past 10 years, but that is just hindsight.  In the next 10 years, US large caps could do phenomenal (doubt it, but nobody knows).
 
Fact is, stastically, there is no way to beat ANY specific index with 100% certainty in advance.  You simply CANNOT account for black swans.  Now, I have seen many, many different investment theories, that over time consistently beat the S&P.  But in any given year, you have no idea what's going to win.  And bottom line is, one year shoudl not make your investment policy.  It shoudl be about getting a consistent return over the mid-term (I hate when fund companies talk about 30+ year time horizons). 
 
It also depends what time period you are investing in.  If you started investing at the beginning of a Secular Bull Market (i.e. early 80's), you can pretty much buy a basket of equities and hang on for the ride.  Start investing at the beginning of a Secular Bear (i.e. 2000), and you NEED to be well-diversified with many different asset classes, and do a better job of timing.  So the entire question of beating the S&P has to be put into perspective of when you are investing.
 
One other thing - Bill Miller may have beat the S&P for years, but his total returns over time were nothing extraordinary.  If I were retired, I would much rather have missed the S&P by a little bit, and had far less volatility than Miller's fund.
 

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Exactly, you can't beat anything with certainty in advance and to base an advisory practice on returns or beating benchmarks is just not something I want to play with. Even the idea of trying to "time" different asset classes makes cringe. Nobody can with any consistency.

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Gaddock---long term returns would probably be better using puts on SPY at some level below current price (say 5 or 10%) and not having "blow up" months or quarters.  Then you'd capture ALL of the upside on the hugely positive periods (like the last 4 weeks or other big moves up).  The "consistently beating S&P" #s might go down, but your total return over long periods of time is likely to be better.  Case in point:  if you had a 5 or 10% put hedge in 4th QTR 2008 (esp 5%), you weathered the storm quite well and had more capital to go back up on 3/9/09.

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Cowboy93 wrote:Gaddock---long term returns would probably be better using puts on SPY at some level below current price (say 5 or 10%) and not having "blow up" months or quarters.  Then you'd capture ALL of the upside on the hugely positive periods (like the last 4 weeks or other big moves up).  The "consistently beating S&P" #s might go down, but your total return over long periods of time is likely to be better.  Case in point:  if you had a 5 or 10% put hedge in 4th QTR 2008 (esp 5%), you weathered the storm quite well and had more capital to go back up on 3/9/09.
 
Another angle I'll have to play with. The only thing is the cost of the hedge. When it was down in Feb selling a put to average down would hav e worked well too.

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Ron,
Who said anything about basing a practice on it? I just thought it would be an interesting topic to hear other peoples thoughts. As for the other trades my software is finding them all over the place. Maybe they wont be here next week, does that mean you shouldnt take 'stupidity liquidity' where you find it? Counting on a bunch of other managers to run your book seems aweful boring to me. Diff strokes I suppose.

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Gaddock wrote:Cowboy93 wrote:Gaddock---long term returns would probably be better using puts on SPY at some level below current price (say 5 or 10%) and not having "blow up" months or quarters.  Then you'd capture ALL of the upside on the hugely positive periods (like the last 4 weeks or other big moves up).  The "consistently beating S&P" #s might go down, but your total return over long periods of time is likely to be better.  Case in point:  if you had a 5 or 10% put hedge in 4th QTR 2008 (esp 5%), you weathered the storm quite well and had more capital to go back up on 3/9/09.
 
Another angle I'll have to play with. The only thing is the cost of the hedge. When it was down in Feb selling a put to average down would hav e worked well too.
 
Yes, gets quite expensive when the market is scared out of its mind....if you can spend some of your call premium in "normal" times on put protection (when it is much cheaper), you have a compelling story about downside protection (to add onto your outperformance story).

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Yes, I am counting on managers to run the investments in my book. I will manage changes in client situations and their emotions.

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Ron 14 wrote:
Yes, I am counting on managers to run the investments in my book. I will manage changes in client situations and their emotions.
 
And that takes all of 20 minutes a week? WOW maybe that's the reason you do it. I would be board to tears.
 
Side thought, I've found the best way to manage a clients emotion is to make money for them.

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Cowboy93 wrote:Gaddock wrote:Cowboy93 wrote:Gaddock---long term returns would probably be better using puts on SPY at some level below current price (say 5 or 10%) and not having "blow up" months or quarters.  Then you'd capture ALL of the upside on the hugely positive periods (like the last 4 weeks or other big moves up).  The "consistently beating S&P" #s might go down, but your total return over long periods of time is likely to be better.  Case in point:  if you had a 5 or 10% put hedge in 4th QTR 2008 (esp 5%), you weathered the storm quite well and had more capital to go back up on 3/9/09.
 
Another angle I'll have to play with. The only thing is the cost of the hedge. When it was down in Feb selling a put to average down would hav e worked well too.
 
Yes, gets quite expensive when the market is scared out of its mind....if you can spend some of your call premium in "normal" times on put protection (when it is much cheaper), you have a compelling story about downside protection (to add onto your outperformance story).
 
If Bernake starts giving speeches during market hours, shorting against the box is the cheapest hedge in town. I used it a lot during the last 8 months.

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Gaddock wrote:Ron 14 wrote:
Yes, I am counting on managers to run the investments in my book. I will manage changes in client situations and their emotions.
 
And that takes all of 20 minutes a week? WOW maybe that's the reason you do it. I would be board to tears.
 
Side thought, I've found the best way to manage a clients emotion is to make money for them.
 
It takes a tad longer, but the rest of the time is spent prospecting

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Ron 14 wrote:Yes, I am counting on managers to run the investments in my book. I will manage changes in client situations and their emotions. Just curious, and not to pick on you personally, but do you consider yourself a financial advisor? or a Psychotherapist?: "often includes techniques to increase awareness, for
example, or to enable other choices of thought, feeling or action; to
increase the sense of well-being and to better manage subjective
discomfort or distress."

Ron 14's picture
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You think the average investor makes correct decisions during volatile markets ? Take one look at equity fund inflows and outflows over the last 10 years, it proves my point.

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Have you looked into Behavioral Finance and Investing? Sound likes it's right up your alley! Peter Bernstein in "Against the Gods" states that the evidence “reveals repeated patterns of irrationality, inconsistency, and incompetence in the ways human beings arrive at decisions and choices when faced with uncertainty.” Behavioral finance attempts to explain how and why emotions and cognitive errors influence investors and create stock market anomalies such as bubbles and crashes. But are human flaws consistent and predictable such that they can be: a) avoided and b) exploited for profit?

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Lately, I have seen more "money in motion" than I can remember (I've
been at this since 1991). I have signed up a couple of really big
accounts and have several more in the pipeline.

If I had to choose between placing my money between you and Gaddock, I
would go with Gaddock. His c***iness/self-confidence would be a big
factor in my decision. Your story is a stale one.

Managed money/hand holding business model is a story that has been
around since 1982. On the other hand, if you could develop your
behavioral finance approach and show us how you interpret triggers or
directional changes in the market(s), I would be interested in
listening.Good Luck

Anonymous's picture
Anonymous

Gaddock wrote:
Sam, more than one way to skin a cat!!
 
Ice,
It's in a wrap account, no transaction fees.
 
SPY would still have a expenses, even if they aren't brokerage expenses directly paid by the client...
 
Still point taken.  I'm familiar with the studies regarding this strategy.  Owners of options have a depreciating asset (i.e. why it's a "suckers bet" to be long the trade - not my words); plus, most stock markets are 100% efficient within themselves, let alone transcending stock + options markets to exploit amplified inefficiency. 
 
 

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skeedaddy2 wrote:Lately, I have seen more "money in motion" than I can remember (I've been at this since 1991). I have signed up a couple of really big accounts and have several more in the pipeline. If I had to choose between placing my money between you and Gaddock, I would go with Gaddock. His c***iness/self-confidence would be a big factor in my decision. Your story is a stale one. Managed money/hand holding business model is a story that has been around since 1982. On the other hand, if you could develop your behavioral finance approach and show us how you interpret triggers or directional changes in the market(s), I would be interested in listening.Good Luck
 
Good for you. Im not interested in convincing people to do business with me because my "story" is more interesting. Buy and hold and hand holding works over time. I dont give too sh**s that it hasn't worked well over the last 10 years, that makes me even more confident moving forward. I am going to go with what I am most confident in and you feel free to do the same.

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iceco1d wrote:Gaddock wrote:
Sam, more than one way to skin a cat!!
 
Ice,
It's in a wrap account, no transaction fees.
 (i.e. why it's a "suckers bet" to be long the trade - not my words) 
 
If you are buying an option as a vehicle to leverage a position on a expected move on the underlying security your probabilities of getting to the strike price, exceeding it to the point you're even on the credit you paid, transaction fees and taxes...
 
Your probability of success is at the very best 50/50, a coin toss.
 
If you're using it in the context of some sort of arb that's a diff story all together.
 
SELLING and option can give you a 0 or -0 Delta giving you odds of failing literally in basis points. My rule of thumb is to take no trade with less than an 85% probability of success. Most are well into the 90%. And yes, probabilities on any one trade are meaningless but over the large sample they are spot on and give me 9 out of 10, actually better than that, that are successful. NOW THAT's an EDGE.
 
Who would take a trade with a 5% probability of success?
 
That's the question my clients ask when my strategy makes sense to them.
 
Answer: F if I know I call it 'stupidity liquidity' and there is plenty to go around.

Gaddock's picture
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Joined: 2007-02-23

Ron 14 wrote:You think the average investor makes correct decisions during volatile markets ? Take one look at equity fund inflows and outflows over the last 10 years, it proves my point.
 
=
 
Hang in there champ, look at this cool chart, this strategy hasn't lost money in any decade, see here is the great depression, WW2, the 70's, S&L's the tech bubble and now ...
 
DOHHHHHH!!!!!!!!!!!!!
 
Well, that's only one ... ummm this one, BUT SINCE THIS IS THE ONLY DECADE, this one here, you know the one you want to retire in, It's just got to get better. I'm very comfortable things will come back ... some day. You see the smartest people in the world are managing your $$, like the guys at Bear Sterns, ML, WashMut, Wachovia, Lehman Bros.
 
They'll get it right this time.
 
What's that Mr. Client? A short sale? not sure what that is.
 
Ever heard of a reverse mortgage?
 
He he he
 
Just kidding dude, I have a very cheap sense of humor.

Ron 14's picture
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Joined: 2008-07-10

You are so far gone it is unbelievable.

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