There are a number of differences between being a professional money manager and being an individual investor. The most important difference may be that individuals have no one to answer to but themselves, and maybe their significant other. A professional money manager has clients to answer to that demand performance against whatever benchmark they choose. The challenge for every professional investor is dealing with those times in which your style or investment process is out of fashion. Sometimes the market will turn in time for your performance to rebound to keep your clients content. Some times it won’t. In either event the market doesn’t care the plight of the investment manager. In today’s screencast we look at the difficulties facing an investment manger out of synch with the market.
Items mentioned in the above screencast:
John Hussman fights the market (and loses). (Hussman Funds also Money Game, The Reformed Broker)
Every investment style goes in and out of fashion. The question is how you deal with it. (Humble Student of the Markets)
Cullen Roche, “(T)here has been no greater lesson than the fact that has been burned into my soul from the last 24 months – the market is not the economy and the market has no sympathy for you, your family or your emotions.” (Pragmatic Capitalism)