MICHEL PIREU: Gimp investors need to cultivate a sceptical attitude to beat the market
Trend following is the best course for average investors who don’t know how to make decisions
“Are you a gimp?” Michael Covel once asked on his website. “Who still pretends markets are efficient, imagines buy and hold as a panacea, believes index investing is Shangri-La and that the US Fed has your best interest at heart?”
A gimp, according to Covel, is the average investor; the investor who isn’t in control, either by their own choice or choices put upon them. They are left to the machinations and manoeuvres of outside forces. They don’t think clearly; they don’t know how to make a decision. Their decision is simple: sit tight and trust the powers that be...