Trend-following strategies will bounce back – academics
Returns drop post-crisis, but rise in following years
Returns earned from trend-following strategies tend to halve for an extended period after a financial crisis, compared with normal market conditions, but they are likely to bounce back, despite the unusually long period of underperformance from these funds over the past five years.
The findings are the result of a study by University College Cork, Ireland, authored by Mark Hutchinson and John O'Brien, investigating whether trend-following could come back into vogue after a period of below long
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