Cliff Asness: How to Know When to Maintain or Alter Your Investing Strategy
In this interview with Carson Group, Cliff Asness discusses the challenge of deciding whether to stick with an investment strategy during a bad period or to make changes. He cautions against always sticking with a strategy, as it assumes that the market never changes.
While often market conditions remain consistent, the risk of a significant shift should not be ignored. When encountering unusual returns, especially over a medium-term period, it’s crucial to investigate the underlying causes.
The example of quantitative value investing’s struggles from early 2018 to late 2020 illustrates the need to thoroughly analyze and understand performance issues.
Here’s an excerpt from the interview:
With that said, the…
