Michael Covel welcomes Robert Aumann the fourth individual that has received a Nobel Prize in economics to appear on his podcast. Covel and Aumann discuss conflict and cooperation through game theory analysis; Aumann has a very interesting way of looking at the world via his game theory perspective. Aumann and Covel talk about his first experience meeting John Nash and Aumann’s early background; what game theory is trying to accomplish; the economic definition of rationality; the idea of a strategy matrix; the world champions of peace and the best way to maintain peace; the 2008-09 bailouts from Aumann’s perspective and a game theory outlook; behavioral economics; game theory, diplomats, and the Cuban Missile Crisis; the existence of nuclear weapons and the Cold War. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Gregory Morris on today’s podcast. Morris is Sr. Vice President, Chief Technical Analyst, and Chairman of the Investment Committee for Stadion Money Management, LLC. He also serves as the chairman of the Station Trust Board. In this capacity Greg educates institutional and individual clients on the merits of technical analysis and why Stadion utilizes a technical rules-based model. Greg oversees the management of over $5.5 Billion in assets in six mutual funds, separate accounts, and retirement plans. Investing With The Trend is his new book. Covel and Morris discuss Morris’ history as a US Navy fighter pilot; the checklist and how foundational it is to trading; how Morris had his first exposure and understanding of technical analysis; Russian Roulette and trading; risk vs. uncertainty; process and predictions; having a set of daily actions; and learning lessons through failure. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Dennis Gartman on today’s podcast. Gartman is the editor and publisher of The Gartman Letter. Gartman appears on CNBC, ROB-TV and Bloomberg television, discussing commodities and the capital markets, and speaks before various associations and trade groups around the world. Covel and Gartman discuss how Gartman first got started; Chicago trading in the late 70’s to the mid 80’s; why you should never add to a losing position; buying strength and selling weakness; systems from Gartman’s perspective, and keeping your systems simple; being patient with winning trades and impatient with losers; Gartman’s daily grind and process; mass psychology, efficient markets, and behavioral economics; Gartman’s thoughts on the market today and geopolitical events; and how we hear about geopolitical events today compared to the past. For more information on Dennis Gartman, visit thegartmanletter.com. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel opens up today’s monologue by talking about a music video that he thinks sums up today’s society. Next, Covel highlights a clip of David Harding talking to CNBC. Covel highlights some of the past issues Harding has seen in talking to CNBC and plays the clip. Covel discusses the history of trend following and some of the core big-picture ideas employed by traders like David Harding, Larry Hite, Ed Seykota, Bill Dunn, and others. Covel moves into a Twitter discussion he had recently where he posted a Bloomberg article featuring the most misinformed description of trend following he’d seen yet. When the author responded on Twitter, sparks flew. Covel talks about the lessons learned by the exchange: it’s a great opportunity to clarify what trend following trading is, the question of where one makes their money from, and academic chops. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel talks with Leo Melamed on today’s podcast. Melamed is a pioneer of financial futures, currencies, and stock indexes. Melamed became Chairman of the Chicago Mercantile Exchange in 1969. In 1972, under his leadership, the CME created the International Monetary Market (IMM), the world's first financial futures exchange, and launched currency futures. He is currently Chairman Emeritus of CME Group (formerly the Chicago Mercantile Exchange). Melamed is also the author of Escape To The Futures. Covel and Melamed discuss overcoming odds; China’s futures markets; the middle class in China; Melamed’s experience meeting Milton Friedman and some of the lessons learned; Melamed’s early experiences escaping Nazi-controlled Poland, and eventually going to work for Merrill Lynch; stock futures; and the importance of speculation. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel talks with John H. Cochrane on today’s podcast. Cochrane is the AQR Capital Management Distinguished Service Professor of Finance at the University of Chicago Booth School of Business. Covel and Cochrane cover wide territory today. Covel and Cochrane discuss Warren Buffett’s quote that he “would have made a fortune” if the banks weren’t bailed out; crony capitalism; why “a good Bear failure may have saved us from a bad Lehman failure”; the cost of regulation; Uber, taxi service, and regulation; why commodities keep getting cheaper and cheaper, but people with expertise keep getting more and more expensive; the idea of discretion; and healthcare. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Meir Statman on today’s podcast. Statman is a professor of finance at Santa Clara University and a behavioral finance expert. His acclaimed book is titled "What Investors Really Want." Covel and Statman discuss how we make decisions, and how these decisions are reflected in markets; what investors want besides the utilitarian aspect of money; philanthropy and status; why Madoff’s clients’ own greed helped them fall into a trap; envy and happiness; the fear of losing and the fear of missing out; mental accounting; Statman’s drivers and early influences; libertarianism vs. paternalism; Social Security and mandatory retirement savings. For more information on Meir Statman, visit http://www.scu.edu/business/finance/faculty/statman.cfm. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Terry Burnham on today’s podcast. Burnham is an economist who studies the biological and evolutionary basis of human behavior. He wrote "Mean Markets and Lizard Brains". Covel and Burnham discuss why Burnham removed $1 million from his Bank of America account and said “I don’t trust the banks”; the two ways to think about risk; separating the ideas of luck and skill; the lizard brain and how it relates back to our choices; a story about interacting with Paul Tudor Jones; why markets have momentum; the great driver of conformity; rationality and irrationality; captive chimps vs. chimps in the wild and the differences in behavior; predicting when the Fed will step in; thinking of the worst case scenario for equities and looking to Japan for an example; and negative interest rates. For more information on Terry Burnham, go to terryburnham.com. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel talks with Andy Puddicombe on today’s podcast. Puddicombe is the founder of Headspace, an award-winning digital health platform that provides guided meditation sessions. Puddicombe is a former Buddhist monk with a degree in Circus Arts. Covel and Puddicombe discuss Puddicombe’s background and how he came into the position he is in today; some traumatic events which may have had an influence on Puddicombe’s decision to become a monk; Covel’s own meditation experience; comparing mindfulness and meditation; the importance of a daily practice; stress and the science behind meditation; neuroplasticity; the wandering mind and unhappiness; the idea of the present moment, and how traders that embrace the present moment have an advantage; and intuition. For more information on Andy Puddicombe, go to headspace.com. Want a free trend following DVD? Go to trendfollowing.com/win.