interesting enough AQR is the company that puts out those funds you are referring to .
cliff asness is a founder .
cliff asness has been a big researcher in to the risk parity portfolios like i have mentioned.
aqr has some very novel funds ..their aqmix which is a managed futures fund is like dbmf which i use in the reaper
nice article about cliff asness
two points cliff makes that i like
“Valuation of markets is a disastrous short-term market timing tool and a super weak strategy over all but the longest horizons.” “One of my peeves is people overuse the word bubble.
I am not a pure efficient marketer that believes it should never be used. It should be reserved, not for saying ‘something is more expensive than I would like it to be’, but for saying ‘there is no possible scenario where this can work out’.” “‘Getting out now’ is a very extreme action yet oddly often how people think about market timing (an approach to timing that we label binary, immodest and asymmetric). If, on the other hand, investors wonder whether they should own somewhat fewer stocks and bonds than usual right now — well, that’s a much harder and much more interesting question.
Overall, for those who think market timing is infeasible, we give hope using basic value and momentum type measures. But the hope is thin – it’s still a really tough strategy.
We like to say ‘if market timing is a sin we recommend you only sin a little!’ At the other extreme, some observers oversell market timing as easy and reliable. It ain’t.” “More expensive markets do lead to lower long-term expected returns even if that doesn’t make them easy to time.” “Both stocks and bonds [offer today] lower expected returns than normal and the combo is actually pretty bad versus history.”
Every time someone says, ‘There is a lot of cash on the sidelines,’ a tiny part of my soul dies. There are no sidelines. Those saying this seem to envision a seller of stocks moving her money to cash and awaiting a chance to return. But they always ignore that this seller sold to somebody, who presumably moved a precisely equal amount of cash off the sidelines.”
https://25iq.com/2018/06/30/lessons-from-cliff-asness/
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