The Benefits of 'Trend Following'

The Benefits of 'Trend Following'

Assessment

Interactive Video

Business

University

Hard

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The video discusses trend following strategies in the current market, highlighting how these strategies involve buying into trends rather than the traditional buy low, sell high approach. It examines current market positions, noting that trend followers are slightly short on stocks and long on bonds and commodities like gold and silver. The video also addresses the performance of these strategies, particularly the success in bond markets, and the challenges faced when trends reverse. It explores the impact of the growing popularity of trend following on market volatility and explains how trends are defined and identified across different time horizons.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

In what ways can the popularity of trend following strategies impact overall market volatility?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

How should one define a trend when applying trend following strategies?

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