It is my belief that there is no professional out there who truly understands the truckloads of reports and analysis that Aladdin regularly produces. Certainly there is no way for individual investors to do their own legwork and come up with the equivalent of Aladdin’s risk models, but I submit to you that this should never be our focus. Instead, let your eyeballs do the work. What matters most is not why these 17,000 money managers vote with their dollars in a particular manner. What matters most is that we see where they are deploying their assets and what they are voting for. Believe your eyes and not your brains. It’s their gigantic footprints that they leave all over our charts that really matter.
BlackRock claims that Aladdin is designed to be “perpetually neurotic”. It seems to me that our individual investors genie should be to create a personal orthodoxy based on a similar mantra – “perpetually neurotic and unceasingly vigilant.” Ours is not to understand why. Ours is to accurately see what and then react accordingly with a nimbleness and decisiveness that big money professionals can only envy.
Data from The Economist, December 7, 2013 issue.
Trade well; trade with discipline!
-- Gatis Roze
