Episode 10: Larry Berman, CMT, CFA

10/08/21 • 71 min

Fill The Gap: The Official Podcast of the CMT Association

Can technical analysis complement value investing? Yes, indeed.

Fundamental practitioners are often grouped into value or growth styles of investing, while within the technical community the corollary styles are momentum vs mean reversion. In Episode #10, we speak with Canada’s foremost market expert Larry Berman, CMT, CFA who shares a compelling perspective on using technical analysis tools to position his funds toward undervalued securities.

Dogmatic believers in any style can consider this quote from the episode:

“There is no right or wrong in what we do. It’s just how you do it.

And results are results.” – Larry M. Berman, CMT, CFA

Fill the Gap covers a lot of ground this month, including:

•How fund managers can think about risk and objective outside the box,

•Details on a multi-factor diffusion model that combines technical, fundamental, and cyclical factors

•The behavioral implications of questions like “is China investable?”

•Why “Thinking in Bets” is all any practitioner can do in a market of infinite uncertainties

Larry gives concrete examples of how to use a multi-timeframe perspective to locate mean reversion opportunities, and explains how technical analysis can help investors avoid “value traps.”

Mr. Berman appears weekly on BNN’s Berman’s Call where he blends fundamentals with expert technical analysis to help Bloomberg viewers uncover opportunities in the marketplace. He is a Co-Founder of ETF Capital Management and The Independent Investor Institute — an organization dedicated to providing unbiased education to Canadian investors. With nearly twenty-five years of investment industry experience, Larry is an accomplished money manager across the equity, commodity, foreign exchange, and fixed income markets.

To better understand the concepts covered and current market commentary, we recommend reviewing the supplemental resources accompanying this episode using this link: go.cmtassociation.org/ftge10

Fill the Gap, hosted by David Lundgren, CMT, CFA and Tyler Wood, CMT brings veteran market analysts and money managers onto a monthly podcast.

For complete show notes of every episode, visit: https://cmtassociation.org/development/podcasts/
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CMT Association is the global credentialing authority committed to advancing the discipline of technical analysis in the financial services industry. We serve members in over 137 countries. Our mission is to elevate investors mastery and skill in mitigating market risk and maximizing return in capital markets through a rigorous credentialing process, professional ethics, and continuous education. CMT Association formed in the late 1960s with headquarters in lower Manhattan, NY and Mumbai, India.
Learn more at: www.cmtassociation.org

Can technical analysis complement value investing? Yes, indeed.

Dogmatic believers in any style can consider this quote from the episode:

“There is no right or wrong in what we do. It’s just how you do it.

And results are results.” – Larry M. Berman, CMT, CFA

Fill the Gap covers a lot of ground this month, including:

•How fund managers can think about risk and objective outside the box,

•Details on a multi-factor diffusion model that combines technical, fundamental, and cyclical factors

•The behavioral implications of questions like “is China investable?”

•Why “Thinking in Bets” is all any practitioner can do in a market of infinite uncertainties

Larry gives concrete examples of how to use a multi-timeframe perspective to locate mean reversion opportunities, and explains how technical analysis can help investors avoid “value traps.”

To better understand the concepts covered and current market commentary, we recommend reviewing the supplemental resources accompanying this episode using this link: go.cmtassociation.org/ftge10

Fill the Gap, hosted by David Lundgren, CMT, CFA and Tyler Wood, CMT brings veteran market analysts and money managers onto a monthly podcast.

Previous Episode

Episode 9: Chris Verrone, CMT

Consistently ranked among the top macro analysts on Wall Street in the annual All-America Research Survey by Institutional Investor magazine, Chris is known to most in this business as one of the hardest-working technical analysts on the street. Episode #9 of Fill the Gap focuses on the distillation process of Mr. Verrone, whose comprehensive and exhaustive coverage of securities markets seeks to highlight what is cogent and compelling.
The sheer magnitude of his charts is impressive, but the precision of the message is what makes Chris and his team’s work so invaluable to clients. Mr. Verrone is a partner of Strategas and is the head of the Firm’s Technical Strategy & Macro Research team. His regularly-published research highlights actionable investment opportunities across the equity, commodity, foreign exchange, and fixed income markets. Whether you are a publishing analyst, a portfolio manager, or an enthusiast of markets, Chris’s insights will help you develop your own method for separating signal from noise. Learn why – despite all of the datasets, geopolitical information, and fundamental narratives available – price is the final arbiter of investment decisions.
To better understand the concepts covered and current market commentary, we recommend reviewing the supplemental resources accompanying this episode using this link: go.cmtassociation.org/ftge9

Fill the Gap, hosted by David Lundgren, CMT, CFA and Tyler Wood, CMT brings veteran market analysts and money managers onto a monthly podcast.

Next Episode

Episode 11: Irusha Peiris, CMT

For our penultimate season one episode of Fill the Gap, we are very fortunate to feature an in-depth conversation with Irusha Peiris, CMT.

Not only has Irusha been practicing the CAN SLIM methodology made famous by William J. O'Neil in his bestselling book, How to Make Money in Stocks, for over two decades; he has also been working within the O'Neil companies since 2009. As a CMT charterholder, portfolio manager at O'Neil Global Advisors, weekly contributor on IBD's must-listen weekly podcast Investing with IBD, and former Director for O'Neil's excellent Market Smith web-based equity research product, Irusha brings a wealth of experience and perspective to this highly informative discussion.

Our conversation spans topics that range from staying focused on picking "game-changing stocks" to the importance of patience and discipline; from always staying humble, to how to manage the pesky mental challenge of constant portfolio drawdowns, and so much more.

As a life sciences student in Boston, Irusha was given the fateful advice to only get into medicine if he was 100% sure it was what he wanted. Certain that he wasn't that certain, he decided to shift his focus to the stock market, where he truly found his passion - and we are grateful that he did.

To better understand the concepts covered and market commentary included in this episode, we recommend reviewing the supplemental resources available on the CMT Association website using this link: go.cmtassociation.org/ftge11.

Fill the Gap, hosted by David Lundgren, CMT, CFA and Tyler Wood, CMT brings veteran market analysts and money managers onto a monthly podcast.

Fill The Gap: The Official Podcast of the CMT Association - Episode 10: Larry Berman, CMT, CFA

Transcript

Transcript

Tyler Wood 00:13

Welcome to Fill the Gap, the official podcast series of the CMT Association, hosted by David Lundgren and Tyler Wood. This monthly podcast will bring veteran market analysts and money managers into conversations that will explore the interviewee’s investment philosophy, their process, and decision making tools. By learning more about their key mentors, early influences, and their long careers in financial servi