FOUR POINTS ADVISORS

Trend-following investing has performed consistently over more than a century, as far back as reliable return data can be obtained for several markets. This consistent long-term evidence suggests that trends are pervasive features of global markets. 

The most likely candidates to explain why markets have tended to trend more often than not include investors’ behavioral biases, market frictions, hedging demands, and market interventions by central banks and governments. Such market interventions and hedging programs are still prevalent, and investors are likely to continue to suffer from the same behavioral biases that have influenced price behavior over the past century, setting the stage for trend-following investing going forward.