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Paul Deegan,Vice-President,Government and Public Relations at BMO Financial Group waves a cowboy hat while sitting atop Marty on Nov 22 2012 during a visit to the Bank of Montreal branch at King St West and Bay St. in Toronto.
Paul Deegan,Vice-President,Government and Public Relations at BMO Financial Group waves a cowboy hat while sitting atop Marty on Nov 22 2012 during a visit to the Bank of Montreal branch at King St West and Bay St. in Toronto.
(Fred Lum/The Globe and Mail)

SCOTT BARLOW

A market-beating strategy you should never, ever attempt

SCOTT BARLOW

 — The Globe and Mail

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Every day ROB Insight delivers exclusive analysis on breaking business news and market-moving events. It is available only to subscribers of Globe Unlimited.

A widely praised speech by a Governor of the U.S. Federal Reserve Board outlined an investment strategy that will outperform the index nine times out of ten. But there’s a catch – the one time the strategy doesn’t work, the portfolio would be completely wiped out. Extended to the banking sector, the discussion underscored exactly what went wrong during the financial crisis and the complexity of the modern, credit-heavy investment environment.