2020 has been quite the year for the stock market and investors. The topic of non-emotional investing is becoming a popular one due to the volatility of 2020. Seeing as the United States of America election day is right around the corner, investors are experiencing major jitters. It is wise to read, have conversations with peers and enjoy your favorite news channel. However, in the midst of exploring the news and launching into casual debates, as investors it’s important to remember to follow the math when making decisions.
As seen on this week’s Wealth Watch…
Vance Howard, the CEO and portfolio manager of Howard Capital Management, Inc., divulged a few of his secrets to Bloomberg Radio recently. The hosts were particularly interested in Howard’s position on trading in such a climate. For them the financial world seemed to be -55 degrees and raining cats and dogs, but to Vance it’s 72 and sunny. How does he keep his mojo? By pressing the off button when the news gets too routy. Consuming too much media seems similar to eating an entire bag of doughnut holes as both can cause stress, pimples and bad sleep. Howard states, “We live in a world where there’s plenty of problems each and every day… you gotta trade through them.”
Quant trading, or quantitative trading, can loosely be translated to “let’s do some math and develop a trading strategy,” and it’s all the rage with your everyday money manager. Quantitative trading is not to be confused with algorithmic trading, as that is a subset and can be looked at more like a brother to quant trading. And as with most siblings, one may resemble the other but they tend to behave differently.