In general I do not have a ton of sympathy for hedge fund managers who say things like “the market has become too irrational now, so it is hard for me to make money.” That’s not how it’s supposed to work! When the market is irrational, there are lots of opportunities for smart rational hedge fund managers; if it is hard for you to make money using your old tricks, that suggests that the market has become more rational. If I had told you in 2015 that trend following wouldn’t work in 2025, you might have said “ah, yes, as artificial intelligence becomes more sophisticated and hedge funds get more competitive, it should be harder to make money by just buying the stuff that went up last month.” But that is probably not quite what happened.

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FROM:

Matt Levine

Money Stuff: Tesla Gives Musk Some Stock

It’s easy to make money following trends and no fundamentals when the market is meme-y. But you should be able to make small, constant money on fundamentals in any market type.