This really reminds me of the grand sequoia strategy... what was it called again? Explosive reproduction? This is effectively my long-term strategy. Accumulate cash when everyone's a bull, invest that cash when there's blood in the streets.
As we learned during the COVID crash, this is much easier said than done. Investing into the crash truly takes extreme discipline and tolerance for either temporary downside or missed bottoms. In the long-run, a little delta from the bottom is inevitably negligible.
This really reminds me of the grand sequoia strategy... what was it called again? Explosive reproduction? This is effectively my long-term strategy. Accumulate cash when everyone's a bull, invest that cash when there's blood in the streets.
As we learned during the COVID crash, this is much easier said than done. Investing into the crash truly takes extreme discipline and tolerance for either temporary downside or missed bottoms. In the long-run, a little delta from the bottom is inevitably negligible.
Would you have the allocation data in real-time or would you need to design a proxy?
There's an announcement lag. The Federal Reserve is slow. But you try a factor-mimicking portfolio. Not sure how much the signal would erode.