The trick is to take risks and be paid for taking those risks, but to take a diversified basket of risks in a portfolio.
When you're in a major market downturn, the beta eats the alpha.
Quantitatve easing is NOT going away. Every major country is running a deficit. If they are all net borrowers then who is the lender? The central banks. For this reason – QE is not going away for a long time.
I don't often know where my ideas come from. Maybe it's the fact that I'm obsessively regimented in my analysis, borderline autistic. But whether it's bond selection or asset allocation, we can do it better than just about anybody around.
