- Looks at the Parker Global Strategies LLC index
- Which tracks top funds in the industry
- The index lost 2.3% in 2015
- Also, a Deutsche Bank measure shows that strategies that seek to benefit from rate differentials (broadly referred to as carry trades) lost the most in 7 years
It goes on:
- A promising start to the year .... returns showing their longest streak of monthly advances since at least 2003
- Gains tailed off
- "Investors turned instead to emerging-market currencies and those of commodity exporters, only to be slammed by falling oil prices and increased volatility"
Most importantly, though, the article includes a handy list of excuses for terrible trading!
- The Federal Reserve failed to raise interest rates as soon as some traders expected
- Emerging-market & commodity exporter currencies "slammed" by falling oil prices and increased volatility
- Traders who used the yen to buy its 16 major peers lost money on 15 of those trades during the past 12 months
- "The problem is that when a currency moves 1 percent a day, it's very difficult to make money."
- Currency-price swings averaged more in 2015 than in any of the previous three years
Dear oh dear ... what a sad and sorry list of excuses.
But, there were some money-makers:
- Strategies that relied on momentum or valuation both returning a profit
- Investors that identified and followed trends booked a 4.3 percent gain in 2015
Trend following worked, eh? Fancy that!