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Investment Strategies / Mechanical Investing
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Author: FlyingCircus   😊 😞
Number: of 3958 
Subject: Re: Bear markets
Date: 03/07/2024 11:50 PM
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Said, it looks like you're trying to stuff things into a box that just don't fit in a box.

Zee's strategies - there are multiple, and layered - fit within a general approach of staying safely invested a significant part of the time, but contrarily jumping on market transitional opportunities "at extremes". Extremes of what? Extremes of sentiment at both tops and bottom points - things like a day where 90% of stocks are below 5 or 20 day moving averages (bottom-like), or an index has hit new highs 5 out of 7 days while less than half of its stocks are above short term moving averages. There are many detailed proprietary data-driven strategies he has developed and his followers use.

Mungo's is his. He has tried to point people to contrarian bullish opportunities at bottom signals, driven by similar sentiment indicators - two phrases: it's so bad it's good, and, many of the best trades at bottoms appear absolutely crazy at the time.

As well, bear markets don't behave the same way, obviously. You get the 2020 fire in a crowded emergency room. You get Q4 2018. You get the slow 2007 into 2008 and 09, and you get the "wow the Fed is really cutting interest rates?!" evacuation 2022. Some slow, some fast panics.

As far as using inverse ETFs - in any event they CAN be very lucrative at strong/obvious market bottoms and tops but as I'm sure you have read they are NOT appropriate as a "core" holding for any serious length of time. 2x or 3x the volatility, and bearish ones decay over time.
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