Comments on: Long/Short Version of the Model http://www.mebanefaber.com/2008/12/08/longshort-version-of-the-model/ Stock Market and Investing Blog of Mebane Faber Tue, 11 Oct 2011 15:24:53 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: salvadorveiga http://www.mebanefaber.com/2008/12/08/longshort-version-of-the-model/comment-page-1/#comment-4297 salvadorveiga Sun, 16 May 2010 03:09:25 +0000 http://www.mebanefaber.com/2008/12/08/longshort-version-of-the-model/#comment-4297 most likely because since most of the portfolio is stocks, they have an upside bias and they are not as trendy as other asset classes like commodities or currencies...<br><br>My thinking would be instead of a full short portfolio when under the 10 month ma, the shorting option would only be allowed in commodities, currencies and perhaps bonds as well, maintaining the rest of the portfolio on flat mode... since these 3 asset classes are more trendy due to supply and demand factors, maybe it would result in good numbers... i dont know most likely because since most of the portfolio is stocks, they have an upside bias and they are not as trendy as other asset classes like commodities or currencies…

My thinking would be instead of a full short portfolio when under the 10 month ma, the shorting option would only be allowed in commodities, currencies and perhaps bonds as well, maintaining the rest of the portfolio on flat mode… since these 3 asset classes are more trendy due to supply and demand factors, maybe it would result in good numbers… i dont know

]]> By: salvadorveiga http://www.mebanefaber.com/2008/12/08/longshort-version-of-the-model/comment-page-1/#comment-4048 salvadorveiga Sat, 15 May 2010 22:09:25 +0000 http://www.mebanefaber.com/2008/12/08/longshort-version-of-the-model/#comment-4048 most likely because since most of the portfolio is stocks, they have an upside bias and they are not as trendy as other asset classes like commodities or currencies...<br><br>My thinking would be instead of a full short portfolio when under the 10 month ma, the shorting option would only be allowed in commodities, currencies and perhaps bonds as well, maintaining the rest of the portfolio on flat mode... since these 3 asset classes are more trendy due to supply and demand factors, maybe it would result in good numbers... i dont know most likely because since most of the portfolio is stocks, they have an upside bias and they are not as trendy as other asset classes like commodities or currencies…

My thinking would be instead of a full short portfolio when under the 10 month ma, the shorting option would only be allowed in commodities, currencies and perhaps bonds as well, maintaining the rest of the portfolio on flat mode… since these 3 asset classes are more trendy due to supply and demand factors, maybe it would result in good numbers… i dont know

]]> By: kkutch http://www.mebanefaber.com/2008/12/08/longshort-version-of-the-model/comment-page-1/#comment-3650 kkutch Sun, 14 Feb 2010 12:32:03 +0000 http://www.mebanefaber.com/2008/12/08/longshort-version-of-the-model/#comment-3650 I would be interested in your thoughts on why the long/short approach delivers inferior results to the long/flat approach. Aside from fees, etc. this seems counterintuitive. Would this also apply if you used relatively cheap instruments such as CFDs to hedge the long position when price falles below the 10 month moving average? I would be interested in your thoughts on why the long/short approach delivers inferior results to the long/flat approach. Aside from fees, etc. this seems counterintuitive. Would this also apply if you used relatively cheap instruments such as CFDs to hedge the long position when price falles below the 10 month moving average?

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