Tuesday, October 1, 2013

Smart Beta

After the blowoff top on the no-taper announcements, stocks have been treading lightly. The selloff yesterday wasn't a large follow through, but it does indicate a bearish thesis for the final quarter of 2013. As September was seasonally a weak month, we may see a pickup of performance in October.
The possible deadlock and shutdown of the US government did lead to futures selling off 10 points and remaining around that range all day. Budget issues have loomed since 2009 and last year's almost deadlock did bring a lot of volatility to the market. I did lighten some exposure, but not all the positions that I added last week.
Given that my strategy is based around being liquid at market turning points, it makes it hard to reverse a bunch of positions only a week harder, I will most likely do it pending on market action tonight. All of my positions last week are in the red, and I got sucked in right at the top.
Smart Beta

Smart beta is simply about trying to identify good investment ideas that can be structured better, whether that is improving existing beta opportunities or creating exposures or themese that are implementable in a low cost, systematic way - Towers Watson